The URL can be used to link to this page

07-069, San Juan Rd. Sale of Property C~) Chicago Title Company 20100 Stevens Creek Blvd, Suite 100, Cupertino, CA 95014 408 253-9050 · FAX 408 25B792 ~~\~ ~ ATTN: David Knapp The City of Cupertino, a municipal corporation 10300 Torre Avenue Cupertino, CA 95014 DATE: June 7, 2007 ESCROW NO.: 07-9840S933-MD LOCATE NO.: CACTI7743-7743-2984-0098405933 PROPERTY ADDRESS: Cupertino, CA 95014 The above referenced escrow has closed as of June 7,2007. The following item(s) are enclosed: Final Closing Statement RESPA HUD-1 Settlement Statement Our wire in the amount of $875,366.05, representing your proceeds was sent to your account. Recorded documents to which you are entitled will be mailed to you by the County Recorder. Should you have any questions, please feel free to contact our office. We trust that this transaction has been handled to your satisfaction and look forward to the opportunity of seeing you again in the near future. Sincerely, _ uulJ Mary Dickerson Branch Manager 408 253-9050 MP enclosure(s) Closing Letter - Seller (selcls)(05-06) Chicago Title Company Proceeds from Real Estate Transactions as required by the Internal Revenue Service Br~nch Address 20100 Stevens Creek Blvd, Suite 100 CUpertino, CA 95014 County Santa Clara County # 2984 Substitute Form 1099-S This is important tax information and is being furnished to the Internal Revenue Service, as required by section 1521 of the Tax Reform Act of 1986. If you are required to file a return, a negligence penalty or other sanction will be imposed if this income is taxable and the IRS determines that it has not been reported. TYPE OR MACHINE PRINT ONLY Es(:row No.: 07-98405933-MD Lotate No,: CAcn7743~7743-2984-0098405933 , I PROPERTY ADDRESS - SEE PAGE 2 FOR EXAMPLES vacant land, Cupertino, CA 95014 ~essors Parcel Number (iAPN) - 342-17-025 PROCEEDS FOR THISiSALE WENT TO: (MULTIPLE SELLERS - Use one form for each seller. Treat husband and wife as bne seller (filing joint tax returns) unless requested otherwise, then separate forms must be used.) S~ page 2 before completing ~ y _ ~. 07- "I ~ \0 ~ 1. The City of CUDertiho Federal Tax ID# for this seller Sellers Name (First, Mil, Last) (List only the Tax ID# for the seller listed on Line 1, spouse Tax ID# not required. Executor/Trustee 2. should not list their name as the seller unless they Spouse or Personal Representative are going to report the proceeds on their personal income tax return,) Date of c10si ng: I TqTAL CONSIDERATION (SEE PAGE 2 TO CALCULATE) $8~8,000.OO Total Consideration [ ] Exchange (If checked) 1 C)il) % Percentage of ownership for this seller [ ] Check here if the maximum determinable proceeds $ GROSS Allocated Proceeds l ~ar.~o~ be determined with certainty , (Total consideration mulmplied by percentage of ownership) $~ Tax Credit to Seller MAILING ADDRESS: ~ 0'60D '\ D~'t (\ut;; :~PsR--nNU I C,A ClS:OIL! ] Check here if the address is outside of the U.s.A. enalty of perjury, that I have read the above information and it is true and correct. .s: 22..01 Date Spouse Date CE-I104 ,..",.i,." 'n_.. n-,n"", Page 1 C~) Chicago Title Company 20100 Stevens Creek Blvd, Suite 100, Cupertino, CA 95014 408 253-9050 . FAX 408 252-3792 DATE: June 7,2007 ESCROW NO.: 07-9840S933-MD LOCATE NO.: CACT17743-7743-2984-0098405933 ESCROW OFFICER: Mary Dickerson TIME: 3:59 PM CLOSING DATE: June 7, 2007 SELLER FINAL CLOSING STATEMENT SELLER: BUYER: PROPERTY: The City of Cupertino, a municipal corporation Dale 5. Baek and Soon Y. Baek and John Chew and Aecha Chew Cupertino, CA 95014 $ DEBITS $ CREDITS FINANCIAL: Total Consideration 898,000.00 ESCROW CHARGES: Draw Deed Notary Fees 50.00 10.00 COMMISSIONS: Listing Brokers Commission to Coldwell Banker 2.500/0 22,450.00 MISCELLANEOUS: First American Natural Hazard Disclosures for Natural Hazard Report 123.95 NET PROCEEDS DUE SELLER $875,366.05 $898,000.00 $898,000.00 TOTALS SAVE THIS STATEMENT FOR INCOME TAX PURPOSES /-\ G 0 ni-:-LF~.-if';J-;3--(5(~)-.- (clsstmtfs)(07-02) C~) Chicago Title Company 20100 Stevens Creek Blvd, Suite 100, Cupertino, CA 95014 408 253-9050 . FAX 408 252-3792 DATE: May 22, 2007 ESCROW NO.: 07-98405933-MD LOCATE NO.: CACTl7743-7743-2984-0098405933 ESCROW OFFICER: Mary Dickerson TIME: 7:26 AM CLOSING DATE: June 6, 2007 SELLER ESTIMATED CLOSING STATEMENT SELLER: BUYER: PROPERTY: The City of Cupertino, a municipal corporation Dale Baek and John Chew Cupertino, CA 95014 $ DEBITS $ CREDITS FINANCIAL: Total Consideration 898,000.00 ESCROW CHARGES: Draw Deed Notary Fees 50.00 10.00 COMMISSIONS: Listing Brokers Commission to Coldwell Banker 2.50% 22,450.00 MISCELLANEOUS: First American Natural Hazard Disclosures for Natural Hazard Report 123.95 ESTIMATED NET PROCEEDS DUE SELLER $875,366.05 $898,000.00 $898,000.00 ESTIMATED TOTALS The Undersigned hereby instruct and authorize Escrow Holder to disburse proceeds/refund as follows: [] TRANSFER [ ] All Net Proceeds/Refund, or [ ] $ TO: ATTN: ESCROW NO: [] HOLD check for PICK UP [] CALL when check is ready for PICK UP, PHONE NUMBER D<J WIRE funds to (Bank Name) Address Routing No. Account No. [] MAIL [] FEDERAL EXPRESS check to The i of C~fertino, a municipal corporation By: ~C:J 0 David W. Knapp, City Ma ager ( clsstmtpsn)(07-02) Initials C~) Chicago Title Company 20100 Stevens Creek Blvd, Suite 100, Cupertino, CA 95014 408 253-9050 . FAX 408 252-3792 WIRE TRANSFER INSTRUCTIONS Escrow No.: 07-9840S933-MD Title No.: 07-98405933-LD Escrow Officer: Mary Dickerson Date: May 22,2007 Locate No.: CACTI7743-7743-2984-0098405933 The undersigned hereby authorizes and directs Chicago Title Company to wire transfer funds, as indicated below, to the Receiving Bank and Account identified below. The undersigned warrants that the information provided in this Authorization is complete and accurate. NET PROCEEDS DUE THE UNDERSIGNED $ OTHER: Receiving Bank: (N ~ ~(PO '~'A-N V<-. S-A-r--J r-= l2....A-N C-l <;;, CO Q..-Y\ \"7_ \ OL:JC:) 2-4 '8 fA IV OF ~ tJ f:.4<.:T1 NO ~ \ 7- \ 03 '6, 4 '1 City/State: ABA#: Wire Payee: Account Number: Notify: Phone: Memo: Other: Provided that the funds are wire transferred in accordance with these instructions, Chicago Title Company shall not be liable for any act or omission of any financial institution or any other person, nor shall Chicago Title Company have any liability for loss of funds or interest thereon. In no event will damages exceed interest at a rate equal to Federal Funds rate, adjusted daily, for the number of days that such funds are unavailable. The undersigned shall indemnify and hold harmless Chicago Title Company, it's successors or assigns, from any loss, liability and cost incurred as a result of any incorrect information supplied. In no event shall Chicago Title Company be liable for any special, consequential, indirect or incidental damages, regardless of whether any claim is based on contract or tort whether the likelihood of such damage was known to Chicago Title Company. (wiretrnsinch)(11-02) @ Chicago Title Company 20100 Stevens Creek Blvd, Suite 100, Cupertino, CA 95014 408 253-9050 . FAX 408 252-3792 SALE ESCROW INSTRUCTIONS Date: May 22, 2007 Escrow No.: 07-98405933-MD Locate No.: CACTI7743-7743-2984-0098405933 Escrow Officer: Mary Dickerson I/We hand you herewith any funds (in the form of wire transfer, certified check, cashier's check or teller's check payable to Chicago Title Company pursuant to the "Deposit of Funds", Paragraph 1 contained in the General Provisions attached hereto and made a part hereof) and/or instruments required from me to enable you to close in accordance with the estimated closing statement and when you are able to procure/issue a CL TA Standard Coverage Policy - 1990 coverage form Policy of Title Insurance from Chicago Title Insurance Company with a liability of $898,000.00, covering the following described property located in the City of Cupertino, County of Santa Clara, State of California: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF SELLER{TRANSFEROR STATES THAT PROPERTY ADDRESS IS: Cupertino, CA 95014 SHOWING TITLE VESTED IN: Dale Baek and John Chew FREE FROM ENCUMBRANCES EXCEPT: 1. Current general and special taxes for the fiscal year in which this escrow closes, ann taxes for the ensuing year, if any, a lien not yet due and payable; 2. The lien of supplemental taxes, if any, assessed pursuantto the provisions of Chapter 3.5 (commencing with Section 75) of the Revenue and Taxation Code of the State of California; 3. Bonds and Assessments with no delinquent payments, if any; 4. Covenants, conditions, restrictions, reservations, easements and rights of way now of record, if any; 5. Exceptions numbered 1 - 5 inclusive as shown in your preliminary report above-referenced. PRORATIONS: THERE ARE TO BE NO PRORATIONS IN THIS ESCROW ADDmONAL INSTRUCTIONS: 1. The receipt by escrow of all documents and monies required to transfer title in accordance with these instructions shall be deemed as sufficient indication that all contingencies and/or conditions contained in the purchase agreement by and between the within buyers and sellers have been removed, complied with, or will be satisfied outside of escrow. 2. The parties hereto acknowledge that they have entered into a Contract for the Purchase and Sale of Real Estate (Deposit Receipt) affecting this transaction. It is expressly agreed that these instructions shall control over said Contract. However, any matters which are expressly covered by said Contract which are not expressly covered by these instructions shall continue to be effective. Chicago Title Company shall be bound solely by these instructions and shall not be concerned with said Contract, or any outside agreement even though it may come into knowledge, or be deposited in the escrow. 3. Escrow Holder is hereby authorized and instructed to charge Seller's account for commission as follows: Coldwell Banker...............................................................................,....................... $22,450.00 10105 S De Anza Blvd Cupertino, CA 95014 ATTN: Steve Elich TOTAL COMMISSION BEING PAID... ........ ........................ ...... ........".. ................... 22,450.00 4. Purchaser and Seller agree Purchaser to pay for the CLTA Standard Coverage Policy - 1990 and escrow fees as charged. Purchaser agrees to pay for the fee, if applicable. All other customary charges incurred herewith shall be charged to and paid by their respective parties. You are hereby authorized to make such additional escrow charges as you deem appropriate in the event unusual escrow services are performed. 5. The undersigned hereby authorize and instruct Escrow Holder to charge each party to the escrow for their respective Federal Express, special mail handling/courier and/or incoming/outgoing wire transfer fees. Unless specified in writing by the undersigned, Escrow Holder is authorized to select special mail/delivery or courier service to be used. Continued on Following Page Initials: ~ (nsbsins14)(07-05) Date: May 22, 2007 Escrow No.: 07-98405933-MD Locate No.: CACTI7743-7743-2984-0098405933 Page 2 6. Buyer agrees to provide new hazard insurance policy acceptable to lender and to authorize payment of premium through escrow unless a paid receipt is provided to escrow. 7. The undersigned Buyer hands you herewith Preliminary Change of Ownership Report as provided for in Section 480.34 of the Revenue and Taxation Code, State of California which you are to cause to be filed concurrently with the Deed in our favor. If form is rejected by the County, a surcharge may be imposed by said County and is to be paid by buyer herein. 8. Seller is aware that interest on the existing loan(s) does not stop accruing at close of escrow, but continues until the actual day of receipt of the payoff by Lender. Seller is aware that interest will accrue through weekends or holidays. Seller is aware he/she/they are responsible for payment of all of such interest and will indemnify and hold Escrow Holder harmless in connection with the payment of such interest. 9. CAL-FIRPTA DISCLOSURE: In accordance with Section 18662 of the Revenue and Taxation Code, a Buyer may be required to withhold an amount equal to 3 1/3 percent ofthe sale price or an alternative withholding amount certified by the Seller in the case of a disposition of California real property interest by either: 1. A Seller who is an .individual, trust, estate, or when the disbursement instructions authorize the proceeds to be sent to a financial intermediary of the Seller, OR 2. A Corporate Seller that has no permanent place of business in California immediately after the transfer oftitle to the California property. The Buyer may become subject to penalty for failure to withhold an amount equal to the greater of 10 percent ofthe amount required to be withheld or five hundred dollars ($500). However, notwithstanding any other provision included in the California statutes referenced above, no Buyer will be required to withhold any amount or be subject to penalty for failure to withhold if any of the following apply: 1. The sale price of the California real property conveyed does not exceed one hundred thousand dollars ($100,000). 2. The Seller executes a written certificate, under the penalty of perjury, certifying that the Seller is a corporation with a permanent place of business in California. 3. The Seller, who is an individual, trust, estate, or a corporation without a permanent place of business in California, executes a written certificate, under the penalty of perjury, of any of the following: A. The California real property being conveyed is the Seller's or Decedent's principal residence (within the meaning of Section 121 of the Internal Revenue Code). B. The last use of the property being conveyed was use by the Transferor as the Transferor's principal residence (within the meaning of Section 121 of the Internal Revenue Code). C. The California real property being conveyed is or will be exchanged for property of like kind (within the meaning of Section 1031 of the Internal Revenue Code), but only to the extent of the amount of gain not required to be recognized for California income tax purposes under Section 1031 of the Internal Revenue Code. D. The California real property has been compulsorily or involuntarily converted (within the meaning of Section 1033 of the Internal Revenue Code) and that the Seller intends to acquire property similar or related in service or use so as to be eligible for nonrecognition of gain for California income tax purposes under Section 1033 of the Internal Revenue Code. E. The California real property transaction will result in a loss or net gain not required to be recognized for California income tax purposes. The Seller is subject to penalty for knowingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement. THE PARTIES TO THIS TRANSACTION SHOULD SEEK THE PROFESSIONAL ADVICE AND COUNSEL OF AN ATTORNEY, ACCOUNTANT OR OTHER TAX SPECIALIST'S OPINION CONCERNING THE EFFECT OFTHIS LAw ON THIS TRANSACTION AN D SHOULD NOT ACT ON ANY SrATEMEf'ITS MADE OR OMITTED BY THE ESCROW OR CLOSING OFRCER. LIENS AND/OR ENCUMBRANCES: Seller hereby confirms that the subject property is free and clear of any liens or encumbrances. Seller further confirms that information regarding any and all liens, encumbrances and/or loan information has been fully disclosed to Escrow Holder. SELLER FORWARDING ADDRESS Continued on Following Page Initials: ~ Date: May 22, 2007 Escrow No.: 07-98405933-MD Locate No.: CACTI7743-7743-2984-009840S933 Page 3 Street: I 0 ~~ DC) \D Q..Q.-e: f1-'v6' City/State/Zipcode: W PU----TI NO C-A C\ c:;D\ Lf Telephone: f:1o'i) 1'1 '/ r 'J.:,,'"?.A <- (work) (-) (-) (mobile) (home) BUYER FORWARDING ADDRESS Street: City/State/Zipcode: Telephone: (_) (-) (-) (work) (mobile) (home) 10. GOOD FUNDS-DISBURSE WHEN AVAILABLE: Buyer and Seller authorize and instruct Chicago Title Company to record all documents required in this escrow when all the conditions of this escrow have been met and upon receipt and deposit of all funds necessary to consummate this transaction in the form of a cashier's check, teller's check or certified check regardless of whether the funds are available for disbursement in accordance with California Insurance Code 12413.1. Immediately upon availability of the deposited instrument, Chicago Title Company is instructed to disburse all funds in accordance with these instructions and/or the attached estimated closing statement. 11. SUPPLEMENTAL TAX: As previously set forth herein, Escrow Holder is instructed to pro-rate taxes on the latest tax bill as of the close of escrow. In view of the change of ownership of the subject property which will take place on the close of this escrow, due to the passage of Chapter 498 and 1102, Statutes of 1983 of the State of California (commonly referred to as Senate Bill No. 813 and Assembly Bill No. 399 respectively), it is to be expected that the taxing authorities will reassess the property and issue a subsequent tax bill. Seller and Buyer acknowledge their awareness of the foregoing and hereby release and relieve Escrow Holder of all liability in connection herewith, and Escrow Holder shall not be further concerned with the above reassessment in any respect. Continued on Following Page Initials: U Date: May 22, 2007 Escrow No.: 07-9840S933-MD Locate No.: CACTI7743-7743-2984-0098405933 Page 4 GENERAL PROVISIONS 1. DEPOSIT OF FUNDS The law dealing with the disbursement of funds requires that all funds be available for withdrawal as a matter of right by the title entity's escrow and/or sub escrow account prior to disbursement of any funds. Only cash or wire-transferred funds can be given immediate availability upon deposit. Cashier's checks, teller's checks and Certified checks may be available one business day after deposit. All other funds such as personal, corporate or partnership checks and drafts are subject to mandatory holding periods which may cause material delays in disbursement of funds in this escrow. In order to avoid delays, all fundings should be wire transferred. Outgoing wire transfers will not be authorized until confirmation of the respective incoming wire transfer or of availability of deposited checks. Deposit of funds into general escrow trust account unless instructed otherwise. You may instruct Escrow Holder to deposit your funds into an interest bearing account by signing and returning the "Notice of Opportunity to Open Interest Bearing Account", which has been provided to you. If you do not so instruct us, then all funds received in this escrow shall be deposited with other escrow funds in one or more general escrow trust accounts, which include both non-interest bearing demand accounts and other depository accounts of Escrow Holder, in any state or national bank or savings and loan association insured by the Federal Deposit Insurance Corporation (the "depositolY institutions") and may be transferred to any other such escrow trust accounts of Escrow Holder or one of its affiliates, either within or outside the State of California. A general escrow trust account is restricted and protected against claims by third parties and creditors of Escrow Holder and its affiliates. Receipt of benefits by Escrow Holder and affiliates. The parties to this escrow acknowledge that the maintenance of such general escrow trust accounts with some depository institutions may result in Escrow Holder or its affiliates being provided with an array of bank services, accommodations or other benefits by the depository institution. Some or all of these benefits may be considered interest due you under California Insurance Code Section 12413.5. Escrow Holder or its affiliates also may elect to enter into other business transactions with or obtain loans for investment or other purposes from the depository institution. All such services, accommodations, and other benefits shall accrue to Escrow Holder or its affiliates and Escrow Holder shall have no obligation to account to the parties to this escrow for the value of such services, accommodations, interest or other benefits. Said funds will not earn interest unless the instructions otherwise specifically state that funds shall be deposited in an interest-bearing account. All disbursements shall be made by check of Chicago Title Company. The principals to this escrow are hereby notified that the funds deposited herein are insured only to the limit provided by the Federal Deposit Insurance Corporation. Any instruction for bank wire will provide reasonable time or notice for Escrow Holder's compliance with such instruction. Escrow Holder's sole duty and responsibility shall be to place said wire transfer instructions with its wiring bank upon confirmation of (1) satisfaction of conditions precedent or (2) document recordation at close of escrow. Escrow Holder will NOT be held responsible for lost interest due to wire delays caused by any bank or the Federal Reserve System, and recommends that all parties make themselves aware of banking regulations with regard to placement of wires. In the event there is insufficient time to place a wire upon any such confirmation or the wires have closed for the day, the parties agree to provide written instructions for an alternative method of disbursement. WITHOlJT AN ALTERNATIVE DISBURSEMENT INSTRUCTION, RJNDS WILL BE HELD IN TRUST IN A NON-INTEREST BEARING ACCOUNT UNTIL THE NEXT OPPORTUNITY FOR WIRE PlACEMENT. 2. PRORATIONS AND ADJUSTMENTS All prorations and/or adjustments called for in this escrow are to be made on the basis of a thirty (30) day month unless otherwise instructed in writing. You are to use information contained on last available tax statement, rental statement as provided by the Seller, beneficiary's statement and fire insurance policy delivered into escrow for the prorations provided for herein. 3. SUPPLEMENTAL TAXES The within described property may be subject to supplemental real property taxes due to the change of ownership taking place through this escrow. Any supplemental real property taxes arising as a result of the transfer of the property to Buyer shall be the sole responsibility of Buyer and any supplemental real property taxes arising prior to the closing date shall be the sole responsibility of the Seller. TAX BILLS ISSUED AFrER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER. 4. UTIUTIES/POSSESSION Transfer of utilities and possession of the premises are to be settled by the parties directly and outside escrow. 5. PREPARATION AND RECORDATION OF INSTRUMENTS Escrow Holder is authorized to prepare, obtain, record and deliver the necessary instruments to carry out the terms and conditions of this escrow and to order the policy of title insurance to be issued at close of escrow as called for in these instructions. Close of escrow shall mean the date instruments are recorded. 6. AUTHORIZATION TO FURNISH COPIES You are authorized to furnish copies of these instructions, supplements, amendments, notices of cancellation and c10sirg statements, to the Real Estate Broker(s) and Lender(s) named in this escrow. Continued on Following Page 7. RIGHT OF CANCELLATION Any principal instructi ng you to cancel this escrow shall file notice of cancellation in your office in writing. You shall, within two (2) working days thereafter, deliver, one copy of such notice to each of the other principals at the addresses stated in this escrow. UNLESS WRITTEN OBJECTION TO CANCELLATION IS FILED IN YOUR OFFICE BY A PRINCIPAL WITHIN TEN (10) DAYS AFrER DATE OF SUCH MAIUNG, YOU ARE AUTHORIZED TO COMPLY WITH SUCH NOTICE AND DEMAND PAYMENT OF YOUR CANCELLA nON CHARGES. If written objection is filed, you are authorized to hold all money and instruments in this escrow and take no further action until otllerwise directed, either by the principals' mutual written instructions, or by final order of a court of competent jurisdiction. 8. PERSONAL PROPERTY No examination or insurance as to the amount or payment of personal property taxes is required unless specifically requested. By signing these General Provisions, the parties to the escrow hereby acknowledge that they are indemnifying the Escrow Holder against any and all matters relating to any" Bulk Sales" requirements, and instruct Escrow Agent to proceed with the closing of escrow without any consideration of matter of any nature whatsoever regarding "Bulk Sales" being handled through escrow. 9. RIGHT OF RESIGNATION Escrow Holder has the right to resign upon ten (10) days written notice delivered to the principals herein. If such right is exercised, all funds and documents shall be returned to the party who deposited them and Escrow Holder shall have no liability hereunder. 10. AUTHORIZATION TO EXEaJTE ASSIGNMENT OF HAZARD INSURANCE POLICIES Either Buyer, Seller and/or Lender may hand you the insurance agent's name and insurance policy information, and you are to execute, on behalf of the principals hereto, form assignments of interest in any insurance policy (other than title insurance) called for in this escrow, forward assignment and policy to the insurance agent, requesting that the insurer consent to such transfer and/or attach a loss payable clause and/or such other endorsements as may be required, and forward such policy(s) to the principals entitled thereto. It is not your responsibility to verify the information handed you or the assignability of said insurance. Your sole duty is to forward said request to insurance agent at close of escrow Further, there shall be no responsibility upon the part of Escrow Holder to renew hazard insur-ance policy(s) upon expiration or otherwise keep it in force either during or subsequent to the close of escrow. Cancellation of any existing hazard insurance policies is to be handled directly by the principals, and outside of escrow. 11. ACTION IN INTERPLEADER The principals hereto expressly agree that you, as Escrow Holder, have the absolute right at your election to file an action in interpleader requiring the principals to answer and litigate their several claims and rights among themselves and you are authorized to deposit with the clerk of the court all documents and funds held in this escrow. In the event such action is filed, the principals jointly and severally agree to pay your cancellation charges and costs, expenses and reasonable attorney's fees which you are required to expend or incur in such interpleader action, the amount thereof to be fixed and judgment therefore to be rendered by the court. Upon the filing of such action, you shall thereupon be fully released and discharged from all obligations imposed by the terms of this escrow or otherwise. 12. TERMINATION OF AGENCY OBLIGATION If there Is no action taken on this escrow within six (6) months after the "time limit date" as set fortll in the escrow instructions or written extension thereof, your agency obligation shall terminate at your option and all documents, monies or other items held by you shall be returned to the parties depositing same. In the event of cancellation of this escrow, whether it be at the request of any of the principals or otherwise, the fees and charges due Chicago Title Company, including expenditures incurred and/or authorized shall be borne equally by the parties hereto (unless otherwise agreed to specifically). 13. CONFLICTING INSTRUCTIONS Upon receipt of any conflicting instructions, you are to take no action in connection with this escrow until non-conflicting instructions are received from all of the principals to this escrow (subject to sections 7, 9, 11 and 12 above). 14. REIMBURSEMENT ATTORNEY FEES/ESCROW HOLDER In the event that a suit is brought by any party or parties to these escrow instructions to Wllich the Escrow Holder is named as a party which results in a judgment in favor of the Escrow Holder and against a principal or principals herein, the principals or principals' agent agree to pay said Escrow Holder all costs, expenses and reasonable attorney's fees which it may expend or incur in said suit, the amount thereof to be.fixed and judgment therefore to be rendered by the court in said suit. 1S.DELrVERY/RECEIPT Delivery to principals as used in these instructions unless otherwise stated herein is to be by regular mail, and receipt is determined to be 72 hours after such mailing. All documents, balances and statements due to the undersigned are to be mailed to the address shown herein. All notices, change of instructions, communications and documents are to be delivered in writing to the office of Chicago Title Company as set forth herein. Initials: ~ Date: May 22, 2007 Escrow No.: 07-98405933-MD Locate No.: CACTI7743-7743-2984-0098405933 Page 5 16. STATE/FEDERAL CODE NOTIFICATIONS According to Federal Law, the Seller, when applicable, will be required to complete a sales activity report that will be utilized to generate a 1099 statement to the Internal Revenue Service. Pursuant to State Law, prior to the close of escrow, Buyer will provide Escrow Holder with a Preliminary Change of Ownership Report. In the event said report is not handed to Escrow Holder for submission to the County in which subject property is located, upon recording of the Grant Deed, Buyers acknowledge that the applicable fee will be assessed by said County and Escrow Holder shall debit the account of Buyer for same at close of escrow. Buyer and Seller herein represent and warrant that they will seek and obtain independent legal advice and counsel relative to their obligations under the "Foreign Investors In Real Property Act", and any other applicable federal and/or state laws regarding same, and will take all steps necessary in order to comply with such requirements and hereby hold you harmless relative to their compliance therewith. 17. ENCUMBRANCES Escrow Holder is to act upon any statements furnished by a lienholder or his agent without liability or responsibility for the accuracy of such statements. Any adjustments necessary because of a discrepancy between the information furnished Escrow Holder and any amount later determined to be correct shall be settled between the parties direct and outside of escrow. You are authorized, without the need for further approval, to debit my account for any fees and charges that I have agreed to pay in connection with this escrow, and for any amounts that I am obligated to pay to the holder of any lien or encumbrance to establish the title as insured by the policy of title insurance called for In these instructions. If for any reason my account is not debited for such amounts at the time of closing, I agree to pay them immediately upon demand, or to reimburse any other person or entity who has paid them. 18. ENVIRONMENTAL ISSUES Chicago Title Company has made no investigation concerning said property as to environmental/toxic waste issues. Any due diligence required or needed to determine environmental impact as to forms of toxification, if applicable, will be done directly and by principals outside of escrow. Chicago Title Compnny is released of any responsibility and/or liability in connection therewith. 19. USURY Escrow Holder is not to be concerned with any questions of usury in any loan or encumbrance involved in the processing of this escrow and is hereby released of any responSibility or liability therefore. 20. DISCLOSURE Escrow Holder's knowledge of matters affecting the property, provided such facts do not prevent compliance with these instructions, does not create any liability or duty in addition to these instructions. 21. FACSIMILE SIGNATURE Escrow Holder is her'eby authorized and instructed that, in the event any party utilizes "facsimile" transmitted signed documents or instructions to Escrow Holder, you are to rely on the same for all escrow instruction purposes and the closing of escrow as if they bore original signatures. Each party shall make every effort to provide to the other party and to Escrow Holder, within 72 hours after transmission, duplicate original documents or instructions bearing the original signatures. Each party further acknowledges and agrees that documents with non-original signatures may not be accepted for recording by the County Recorder, therefore no closing or recording may take place without the submissim of the original documents. 22. CLARIFICATION OF DUTIES Chicago Title Company serves ONLY as an Escrow Holder in connection with these instructions and cannot give legal advice to any party hereto. Escrow Holder is not to be held accountable or liable for the sufficiency or correctness as to form, manner of execution, or validity of any instrument deposited in tllis escrow, nor as to the identity, authority or rights of any person executing the same. Escrow Holder's duties hereunder shall be limited to the proper handling of such money and the proper safekeeping of such instruments, or other documents received by Escrow Holder, and for the disposition of same In accordance with the written instructions accepted by Escrow !-bIder. The agency and duties of Escrow Holder commence only upon receipt of copies of these Ec,crow Instructions execut~ by all parties. THIS AGREEMENT IN ALL PARTS APPLIES TO, INURES TO THE BENEFIT OF, AND BINDS ALL PARTIES HERETO, THEIR HEIRS, LEGATEES, DEVISEES, ADMINISTRATORS, EXECUTORS, SUCCESSORS AND ASSIGNS, AND WHENEVER THE CONTEXT SO REQUIRES THE MASCULINE GENDER INCLUDES THE FEMININE AND NEUTER, AND THE SINGULAR NUMBER INCLUDES THE PLURAL. THESE INSTRUCTIONS AND ANY OTHER AMENDMENTS MAY BE EXECUTED IN ANY NUMBER OF COUNTERPARTS, EACH OF WHICH SHALL BE CONSIDERED AS AN ORIGINAL AND BE EFFECTIVE AS SUCH. MY SIGNATURE HERETO CONSTITUTES INSTRUCTION TO ESCROW HOLDER OF ALL TERMS AND CONDmONS CONTAINED IN THIS AND ALL PRECEDING PAGES AND FURTHER SIGNIFIES THAT I HAVE READ AND UNDERSTAND THESE GENERAL PROVISIONS. Chicago Title Company conducts escrow business under a Certificate of Authority No. 350 issued by the California Department of Insurance. BUYER SIGNATURE(S): Dale Baek John Chew RECEIVED BY: Chicago Title Company BY: DATE: Date: May 22, 2007 Escrow No.: 07-98405933-MD Locate No.: CACTI7743-7743-2984-0098405933 Page 6 The Undersigned hereby instruct and authorize Escrow Holder to disburse proceeds as follows: [] TRANSFER [ ] All Net Proceeds, or [ ] $ To: Attn: Escrow No.: [] HOLD check for PICK-UP [] CALL when check is ready for PICK-UP, PHONE NUMBER [] WIRE funds to (Bank Name) Add ress Routing No. Account No. [] MAIL [ ] FEDERAL EXPRESS check to SELLER SIGNATURE(S): By: Fidelity National Title Group of Companies' Privacy 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 ("Personal 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 collect Personal Information about you from the following sources: From applications or other forms we receive from you or your authorized representatve; From your transactions with, or from the services being performed by, us, our affiliates, or others; From our internet web sites; From the public records maintained by governmental entities that we either obtain directly from those entities, or from our affiliates or others; and From consumer or other reporting agencies. Our Policies Regarding the Protection of the Confidentialit 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 aa:ess to the Personal Information only to those employees who need 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 Infonnation We may share 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 or representatives to provide you with services you have requested; to third-party contractors or service providers who provide 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 ofinterest. 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 'lpplicable privacy laws such as, for example, when disclosure is needed to enforce our rights arising out of any agreement, tansaction 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 ani Ability to Correct Errors or Request Changes or Deletion Certain states afford you the right to aa:ess 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 correction, amendment or deletion of your Personal Information. We reserve the right, where permitted by law, to charge a reasonable fee to cover the costs incurred in responding to such requests. All requests must be made n 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 notice from us. We apologize for any inmnvenience this may cause you. Privacy Statement (privacy) (11/05) Escrow No.: 07-98405933-MD Locate No.: CACTI7743-7743-2984-0098405933 Title No.: 07-98405933-LD EXHIBIT "A" OWNERrrRANSFEROR STATES THAT PROPERTY ADDRESS IS: Cupertino, CA 95014 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF CUPERTINO, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: Lot 168, as shown on that certain Map eMitled "Map of Inspiration Heights Monte Vista", which Map was filed for record in the Office of the Recorder of the County of 3anta Clara, State of California, on April 11, 1917 in Book "P" of Maps at page(s) 13. APN 342-17-025 Non-Foreign Certification - Transferee and Transferor Date: May 22,2007 Escrow No.: 07-98405933-MD Locate No.: CACTl7743-7743-2984-0098405933 This form is provided so that the Buyer and/or Seller in this transaction can certify compliance with the Foreign Investment in Real Property Tax Act to the Escrow Agent and/or Buyer. Transferee/Buyer must retain a copy of this document until after the fifth taxable year following the transfer. I. Transaction on Personal Residence not exceeding $300,000.00. I/We hereby certify that: (a) the amount realized for the property in this transaction does not exceed $300,000.00; and (b) Buyer(s) is/are acquiring said property for use as a residence. Buyer Buyer II. Certification of Non-Foreign Status by Individual Section 1445 of the Internal Revenue Code provides that a Transferee (Buyer) of a U.S. Real Property Interest must withhold tax if the Transferor (Seller) is a foreign person. To inform the Transferee (Buyer) and Escrow Agent that withholding of tax is not required upon my disposition of a U.S. Real Property Interest, I, the undersigned Seller(s), hereby certify the following: 1. I am not a non-resident alien for the purposes of U.s. Income Taxation, 2. My U.s. taxpayer identifying number (Social Security Number) is: ; and 3. My home address is: I understand that this certification may be disclosed to the Internal Revenue Service by the Transferee and that any false statement I have made herein could be punished by fine, imprisonment, or both. Under penalty of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete. Date: Seller Seller III. Certification of Non-Foreign Status by Entity Section 1445 of the Internal Revenue Code provides that a Transferee of a U.S. Real Property Interest must withhold tax if the Transferor is a foreign person. For U.S. tax purposes (including section 1445), the owner of a disregarded entity (which has legal title to a U.s. Real Property Interest under local law) will be the Transferor of the property and not the disregarded entity. To inform the Transferee that withholding of tax is not required upon the disposition of a U.S. Real Property Interest, the undersigned hereby certifies the following on behalf of the Transferor/Seller: FIRPTA-1007-A (firptacert)(04-06) Page 1 of 2 Seller, Buyer and Escrow Holder to maintain a copy for five (5) years Rev. 10/31/03 1. Non-Foreign Certification - Transferee and Transferor ~.\'i 0 y- r AJ r~-n N () is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations); 2. is not a disregarded entity as defined in ~1.1445-2(b)(2)(iii). 3. u.s. employer identification number is Ci L\ - lot L , "3 \c 8 ; and 4. The office address is \ t> ':6Do-rDQ..Q..G ~ ~)UrV-\IND fA ~~\y The Transferor/Seller understands that this certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both. By: Date: ~. 2-2.-. 0 1- Title: tA\'f IV. Certification by Buyer I have examined this certification and to the best of my knowledge and belief it is true, correct and complete. Date: Buyer Buyer FIRPTA-1007-A (firptacert)(04-06) Page 2 of 2 Seller, Buyer and Escrow Holder to maintain a copy for five (5) years Rev. 10/31/03 YEAR CALIFORNIA FORM 2007 Real Estate Withholding Certificate Part I - Seller's Information Name (including spouse, if jointly owned - see instructions - type or print) fu~"N() Address (number and street, PO Box, rural route, apt no., or PMB no.) ~- 593-C an . city \b Q..{LG ~ f> U-- 'l\ i\.JO State ZIP Code ~~,y NOTE: If you do not furnish your tax ID number, this certificate is void and withholding is required. Ownership Percentage ~~ Property address (if no street address, provide parcel number and county) ~ ~ =olt2-\1~D2-C;: Read the following and check the appropriate boxes. (See line-by-Iine notes in the instructions.) % Part II - Certifications which fully exempt the sale from withholding: YES NO 1. Does the property qualify as the seller's (or decedent's, if being sold by the decedent's estate) principal residence within the meaning of Internal Revenue Code (IRe) Section 121? .........................................................................................................................................0 0 2. Did the seller (or decedent, if being sold by the decedent's estate) last use the property as the seiler'S (decedent's) principal residence within the meaning of IRC Section 121 without regard to the two-year time period?................................................................................. 0 0_ 3. Will the seller have a 1055 or zero gain for California income tax purposes on this sale? (To check YES, you must complete Form 593-E, Real Estate Withholding - Computation of Estimated Gain or Loss, and have a loss or zero gain on line 16.)..........................0 0 4. Is the property being compulsorily or involuntarily converted and does the seller intend to acquire property that is similar or related in service or use to qualify for nonrecognition of gain for California income tax purposes under IRC Section 1033?.................................... 0 0 S. Will the transfer qualify for nonrecognition treatment under IRC Section 351 (transfer to a corporation controlled by the transferor) or IRC Section 721 (contribution to a partnership in exchange for a partnership interest)? ....................................................... 0 0 6. Is the seller a corporation (or an LLC classified as a corporation for federal and California income tax purposes) that is either qualified through the California Secretary of State or has a permanent place of business in California? ................................................................... 0 0 7. Is the seller a partnership (or an LLC that is classified as a partnership for federal and California income tax purposes and is not a disregarded single member LLC) with recorded title to the property in the name of the partnership or LLC? (If yes, the partnership or LLC must withhold on nonresident partners or members as required.) .............................................................. 0 0 8. Is the seller a tax-exempt entity under either California or federal law?................................................................................... .................':S. 0 9. Is the seller an insurance company, individual retirement account, qualified pension/profit sharing plan, or charitable remainder trust? ...... 0 0 Part III - Certifications that may partially or fully exempt the sale from withholding: Escrow Officer: See instructions for amounts to withhold. 10. Will the transfer qualify as a simultaneous like-kind exchange within the meaning of IRC Section 1031 ?............................................. 0 0 11. Will the transfer qualify as a deferred like-kind exchange within the meaning of IRC Section 10317................_...................................0 0 12. Will the transfer of this property be an installment sale that you will report as such for California tax purposes and has the buyer agreed to withhold on each principal payment instead of withholding the full amount at the time of transfer7 ................................. 0 0 Part IV - Seller's Si nature Under penalties of perjury, I hereby certify that the information provided above is, to the best of my knowledge, true and correct. If conditions change, I will promptly inform the withholding agent. I understand that the Fra . e Tax Board may review relevant escrow documents to ensure withholding compliance and that completing this form does not exempt me from Iin a Calif' nia i come franchise tax return to report this sale. Seller's Name and TitleJhw( ~ w ,t:JJ4,," (\ c.:~ ~"" Seller's Signature Date e;-. 2..1 . 01 Spouse's Name Spouse's Signature Date Seller: If you checked YES to any question in Part II, you are exempt from real estate withholding. If you checked YES to any question in Part III, you may qualify for a partial or complete withholding exemption. If you checked NO to all of the questions in Part II and Part III, the withholding will be 3 1/3% (.0333) of the total sales price or the alternative withholding amount certified by seHer in box 8 of Form 593-B. If you are withheld upon, the withholding agent should give you two copies of Form 593-B, Real Estate Withholding Tax Statement. Attach one copy to the lower front of your Catifornia income tax return and keep the other copy for your records. For Privacy Notice, get form FTB 1131. 7131063 r- Form 593-C C2 2006 PROPERTY ADDRESS For vacant land do not attach legal. List the Lot, Block, Assessors Parcel Number (APN) or Tax Lot #. Do not enter only the street name. DO NOT FORGET CITY OR COUNTY. STATE AND ZIP. CORRECT 1. Lot 6, Block 4, Section 7 2. APN 99-99-999-99-9 3. Parcel A and B Anywhere lane INCORRECT STREET ADDRESS 1. 1/2 NW portion of lot 4, 1/4 less 3 ft of lot 6. (You need only enter as Portion of Lot 4 and 6) 2. 6 acres, Anywhere township (you must use a Lot and Block, or Parcel #) 3. California land (you must include a Lot and Block, or Parcel #) SELLER NAME AND TIN It is very important that the sellers name and Federal Tax Identification number (TIN) listed on line 1 match according to IRS records. The TIN for individual recipients of information returns is the Social Security number (SS) (xxx-xx-xxxx) and their full name must be shown. For other recipients including Partnerships and Estates, it is the Employer Identification number (xx-xxxxxxx). You need ONLY list the name ofthe person whose TIN is being reported on line 1. For Foreign persons (no U.s. Federal TIN) enter the word "FOREIGN" for their Tax ID on line 1. Choose one of the following: PROCEEDS FOR THIS SALE ARE BEING REPORTED TO: INDIVIDUAL - List ONE person's full name and Social Security number on line 1. Spouse on line 2. OnlY husband and wife may be listed on the same form (filing joint tax returns). EST A TE/TRUST - If the Estate or Trust is being reported, ONLY the person's name corresponding with said TIN should be listed on line 1. The Executor or Trustee (one name only) may be listed on line 2. NOTE: Line 1 must include the Legal Trust or Estate. Example: Line 1 John H. Smith Trust or Estate of Jane Smith (xx-xxxxxxx) Line 2 Jane Smith, Trustee or John Smith, Executor (optional) PARTNERSHIP - Requires an EIN# (xx-xxxxxxx) & the name of the Partnership listed on line 1. Do not list the individual partners. TAX CREDIT TO SELLER Tax Credits to seller contained in the 400 series of the HUD-1 or tax credits to seller on a comparable closing statement form. I. TOTAL CONSIDERATION $ Enter this amount on line below, and on Side 1 of this form Choose only one: A. Sales (Normally, sales price on closing statement) B. Concurrent Exchanges (Debt relief, cash received, and notes received) - Check box on side 1. C. Deferred Tax Exchange (Exchange value until further clarification) - Check box on side 1. D. Contingent payment transaction (Receipt of a portion of the consideration is subject to a contingency- show the maximum determinable proceeds if all the contingencies were met). E. The maximum determinable proceeds cannot be determined with certainty. Enter the gross proceeds you can determine and check box. Enter $$ amount shown on line I above. % Multiply by the % of gross proceeds reported by this seller (do not complete a form for 0%). (Example: If the seller is reporting 50% of gross proceeds, multiply line II by 50%) = Gross allocated proceeds for this seller. Enter this amount on side 1 of this form. GROSS ALLOCATED PROCEEDS WORKSHEET To be completed by the Escrow Holder (See A-D to determine) II. $ $ CE-l04 (1099) (Rev. 07-04) Page 2 RECORDING REQUESTED BY: Chicago Title Company Escrow No.: 07-98405933-MD Locate No.: CACTI7743-7743-2984-0098405933 Title No.: 07-98405933-LD When Recorded Mail Document and Tax Statement To: Dale Baek Cupertino, CA 95014 APN: 342-17-025 SPACE ABOVE THIS LINE FOR RECORDER'S USE GRANT DEED The undersigned grantor(s) declare(s) Documentary transfer tax is $987.80 ~ J L _J' avid W. Knapp ~ '" [ x ] computed on full value of property conveyed, or [ J computed on full value less value of liens or encumbrances remaining at time of sale, [ ] Unincorporated Area City of Cupertino, FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The City of Cupertino, a municipal corporation hereby GRANT(S) to Dale Baek and John Chew the following described real property in the City of Cupertino, County of Santa Clara, State of California: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF DATED: May 22, 2007 Th ~~ STATE OF CAUFORNIA COUNTY OF Santa Clara ON Mav 22. 2007 M. Dickerson. Notary Public (here insert name and title of the officer), personally appeared David W. Knapp. personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her /thei r sig natu re( s) on the i nstru ment the person( s), or the entity upon behalf of which the person(s) acted, executed the instrument. ) ) before me, Witness my hand and official seal. Signature (Seal) FD-213 (Rev 7/96) (grantsc)(06-06) MAIL TAX STATEMENTS AS DIRECTED ABOVE GRANT DEED Escrow No.: 07-9840S933-MD Locate No.: CACTI7743-7743-2984-0098405933 Title No.: 07-9840S933-LD EXHIBIT "A" THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CnY OF CUPERTINO, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: Lot 168, as shown on that certain Map entitled "Map of Inspiration Heights Monte Vista", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California, on April 11, 1917 in Book "P" of Maps at page(s) 13. @ CHICAGO TITLE COMPANY REA,Q AND APPROVED X ~~~..~--"..,.-.~>_._"~">-"'_._~ X _--~.~-_...>-_._~--~~~ n A TF _~?~:..2z~~.-~~a-._-~~>~ HEAD AND APPROVED :X .~_.~...__..._..__.......__...._.._.__.._ X ~___~_.~..__~.~___...~....._, "', "IE U f\. '- '~~.___~_...'~~._ ........ _.,._~_._. PRELIMINARY REPORT In response to the application for a policy of title insurance referenced herein, Chicago 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 herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions of said po/icy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties, Limitations on Covered Risks applicable to the CL TA and AL TA Homeowner's Policies of Title Insurance which establish a Deductible Amount imd a Maximum Dollar Limit of Liability 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 of facilitating 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 Chicago Title Insurance Company, a Missouri corporation. Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in Attachment One of this report careful/y. 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 careful/y considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list aI/liens, defects and encumbrances affecting title to the land. Iiii\. .. ..... . ~~.j~.~~.n.y ,...... \!!!I AlTEST 7' .J~C~ CLT A Preliminary Report Form - Modified (11/17/06) Visit Us on our Website: www.ctic.com @ Chicago Title Company 20100 Stevens Creek Blvd, Suite 100 . Cupertino, CA 95014 408253-9050. FAX 408 252-3792 PRELIMINARY REPORT Title Officer: Liz Duron Escrow Officer: Mary Dickerson Escrow No.: 07-98405933-MD TO: Coldwell Banker 10105 S De Anza Blvd Cupertino, CA 95014 A TIN: Steve Elich Title No.: 07-98405933-LD Locate No.: CACTl7743-7743-2984-0098405933 SHORT TERM RATE: No PROPERTY ADDRESS: Cupertino, California EFFECTIVE DATE: April 6, 2007, 07:30 A.M. The form of policy or poliCies of title insurance contemplated by this report is: CLTA Standard Coverage Policy - 1990 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 Cupertino, a municipal corporation 3. THE LAND REFERRED TO IN THIS REPORT IS DESCRIBED AS FOLLOWS: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF LS\CVG 04/18/2007 Q J: 1', F. ' ..1\ l\J :1)'\ /1 [; P Flll') \1t.r" D l .~.,_j-\'~J r" ~. t ..l ". ., . . \, l\, ~_,_....--_ ~.__._._- - "'''-.', ".-- -. . ......--- - Rr-t.JJ.n A' 1\10 t:,PPROVED ~ ruJ J'u J'""" .... -';,..f' j\ ...--....,~..... .--..' \/ 1\. _._~_~..~_m~~."'."~"'.'- ..,.~~, --~ ." rrr S. '2-2.0 Q. ....~_ II r\! !: ,~~""_~___r~'~:<_~... x ........ ..--~~--.--.~_.-_... ..-- D. ill"t-- ~._..-_..~.-". -, n. '_.- ~ .-.<'~~---- 1 ClTA Preliminary Report Form - Modified (11/17/06) Title No. 07-9840S933-LD Locate No. CACT17743-7743-2984-0098405933 LEGAL DESCRIPTION EXHIBIT "A" THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF CUPERTINO, COUNlY OF SANTA CLARA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: Lot 168, as shown on that certain Map entitled "Map of Inspiration Heights Monte Vista", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California, on April 11, 1917 in Book "P" of Maps at page(s) 13. APN: 342-17-025 R.~. 0 AlliIn .IlPppn\tf:jl . \I\aL. '~;J ~ j ~_t ~ ,'._,...d X ____..._._..___. -- ....-......-.- . . READ AND APPROVED X _~_.,~.~_~~.~ )( DATE X DATE __~.::?_~ ~1_.-,. -~------~~"_.__. ,---~--'-'~,,"-'- 2 ClTA Preliminary Report Form - Modified (11/17/06) Title No. 07-98405933-LD Locate No. CACTI7743-7743-2984-0098405933 AT THE DATE HEREOF, ITEMS TO BE CONSIDERED AND EXCEPTIONS TO COVERAGE IN ADDmON TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POUCY 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. 2006-2007 Taxes not due by the fact the Vestee Herein is a Governmental Agency. 3. Special Tax for Santa Clara County Library District Joint Powers Authority Community Facilities District No. 2005-1, under the Mello-Roos Community Facilities Act of 1982 as disclosed by a Notice of Special Tax Lien Recorded June 24, 2005, Instrument No. 18438576, Official Records, payable in continuing installments collected with the real property taxes. 4. 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. S. Rights of the public as to any portion of the land lying within the area commonly known as San Juan Road. 6. This Company will require the following documents for review prior to the issuance of any title assurance predicated upon a conveyance or encumbrance by the corporation named below. Corporation: The City of Cupertino, a municipal corporation, (a) (b) A copy of the corporation By-Laws and Articles of Incorporation. An original or certified copy of the Resolution authorizing the transaction contemplated herein. (c) If the Articles and/or By-Laws require approva~ by a "parent" organization, a copy of the Articles and By-Laws of the parent. The right is reserved to add requirements or additional items after completion of such review. 7. The herein referred to property appears to be free and clear of any Deeds of Trust or Mortgages. Please confirm if this is the case. END OF ITEMS Note 1. The current owner does NOT qualify for the $20.00 discount pursuant to the coordinated stipulated judgments entered in actions filed by both the Attorney General and private dass action plaintiffs for the herein described property. 3 ClTA Preliminary Report Form - Modified (11/17/06) NOTES: (continued) TItle No. 07-98405933-LD Locate No. CACTl7743-7743-2984-0098405933 Note 2. The application for title insurance was placed by reference to only a street address or tax identification number. Based on our records, we believe that the description in this report covers the parcel requested, however, if the legal description is incorrect a new report must be prepared. If the legal description is incorrect, in order to prevent delays, the seller/buyer/borrower must provide the Company and/or the settlement agent with the correct legal description intended to be the subject of this transaction. Note 3. There are NO deeds affecting said land, recorded within twenty-four (24) months of the date of this report. Note 4. If a 1970 ALTA Owner's or Lender's or 1975 ALTA Leasehold Owner's or Lender's policy form has been requested, the policy, when approved for issuance, will be endorsed to add the following to the Exclusions From Coverage contained therein: Loan Policy Exclusion: Any claim, which arises out of the transaction creating the interest of the mortgage insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (iii) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (a)to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. Owners Policy Exclusion: Any claim, which arises out of the transaction vesting in the insured, the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the estate or interest by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. 4 ClTA PrelininalY Report Fonn - Modified (11/17/06) NOTES: (continued) Note 5. Note 6. Note 7. Note 8. TItle No. 07-98405933-LD locate No. CAC117743-7743-2984-0098405933 The CompaAY is not aware of any matters which would cause it to decline to attach the CLTA Endorsement Form 116 indicating that there is located on said land Single Family Dwelling known as, Cupertino, CA to an Extended Coverage Loan Policy. NOTE: The policy of title insurance will include an arbitration provision. The Company or the insured may demand arbitration. 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. Please ask your escrow or title officer for a sample copy of the policy to be issued if you wish to review the arbitration provisions and any other provisions pertaining to your Title Insurance coverage. 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 fits this category, the statement is to be included in the manner described. Wiring instructions for Chicago Title Company, Cupertino, CA, are as follows: Receiving Bank: Bank of America 275 Valencia Blvd, 2nd Floor Brea, CA 92823-6340 026009593 Chicago Title Company - Cupertino 20100 Stevens Creek Blvd, Suite 100, Cupertino, CA 95014 12353-81969 07-98405933-MD ABA Routing No.: Credit Account Name: Credit Account No.: Escrow No.: These wiring instructions are for this specific transaction involving the Title Department of the San Jose office of Chicago 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 5 ClTA Preliminary Report Fonn - Modified (11/17/06) \ >-. ~.to,~.~ ''''s" . . ,D- r.n::-::. ~~' . "'."'; .Ot -:.' 1>\------ ~ctU, D ~..ha,1~ !l __~ ~ ~ ~ III ~ : - '" ~ ~I ~~.~ ..:-.. ~ ~,- \ j ,*-< lIlI :: :i E - _.__..'18 ~."...: u d -~f-'-m1'--u -----' 11I..L ... ! I -< L ! !r-~i"6-- ! .- ..... ~el! -,...'!:JI ~ ..!2 :r~.... "'_... iisD"'-....~ .~.--I ~ I -.i '01 ~ ...J ~ ..,.1'.... l U u. --~ -~6' --~ r:;~ ~.~91 ,.;~.;~ ~ ~ ----~---l ~~--~.:._-- or.o~' . C-z I ~ PJ:!..:..- ~HJ... < ll:)I : ~ ~ III L-L_-::::--:~ ~ ';; ~ Jt.: IDI tt.. In tDI I ,:)_.... l:t 2' ~ F'" ~:- - IIQI ~;~ l'I Olt~o I gt t: cq ~'\r -< ! --i Ja, to N ._~._. I. "''''I tt\. !Sl t iR;: OZt'OU :(p,Ja<J:?~ ~ ~ E~ t ~U ;i ~i; '" ~ o ~:.:: . ...nL~ ~ ------~ ~~ ~,~ ~ sol ---- -Q, -~ ~ V)I ~; ; ON Il", IIQI ,: ... fl to"'.;1 ~ t-.:.---ca;-----:~------ tI,f ----..\ ~ .. ~ _.L~ ~ Olj ~ 10)1 \. \\- .-_ _ I 'lOI "".. ; i :r;l--:--~-f ~ \~. :: ...) :..~:..- !Jl1 _ l'llll! 011 ;It g:. u ~ .. ;j'"ll ~.. d I L "I d " -, ~ gs .C" ~\ Co ",,,lfI' " '" ttl . ----j'i:..~ ~ d it '- A h_ i o ___e:!:.__~-----I!'---- ~..,.. \ ,4iQT 'V', ~ II It: ~ " - I ~ 1..1~' ~ III' I = -.. I ~ ..Ii'"' q Il . A' l ~~ ;J - :~ II ~- ~ ;:lpl~~~ ~d ~ ,~:~" I ~~ .... ..... .. ~I .... ~~. --- ~' .ti";-,~ I II . ,OIAfO ~..r\ --- ~~' -.J I ,_~ tl..o.~ 1,~-M.l3 I ~o~....::---- &. .7'- "" ';!:?;j 'l~ J .:..--____ ~ Il'll / ("""'~l 10'to './ ~..s::::=- .-::::::=::-- ~ " ? l/ ... J. ___~~.. S. ,""? ~. 0$-,' aJ r !'1 ~ . i; ~ .. '.. ..~' "I ~ ~ / 'S. d' <l :- ~'> II ~r:~ ~~/ ~ ~ :: ~ / \.~ '~~ /~" -!'t ~( ~ 0 o ~ ' ; -A~ ~.," ~ ~ "'""' ~ ~ i!lt. '.... q o:"~.. no.: "Co. 0,0 1131 .':'Ii " "~ ...... c:::~ '. />.~ ~ ~~ ..~ " ~ ~. ~ ~.] to \00 ~~~, '" " ' ..!! ~. '", " . J //".' . ~ '. .,~ <ll :",. ~ '~', r:J LJ ~ ~ * \ ............. \~/' - " Y' .t4-' -. ..,/ ~ < o ~- ac: z '" <Ii 0 Q! >- ~ ~ '" "" :J ~ 0 -lE- I:; u I~ < '" "',." < ... u < .. z -< III : " ~ .J I 1;: t \ \ \ ~ \ '" 21 -;"'CSl .. '" o '" III W '" '" < Ln I- ~ ~~ '" ",- 0> ~~ c:~ VI" :x >- .. :z :I o U ... o w u ... ... o @ ~ " ,,9~J - avo~ - - ~ ... V^CXRIO:> , --I---~---- ;i~ ~ld ~ 4. .. .. ..a"i~ ttl'd UIi @ ~EAD ADlO ApPfiOVfL: X<o~............... D All ~~~.~'?:.?- -~:1,"_" . ~AD AND APPHOVEi ~-~-~~.~~._".....~.. .~--,.,~, ..... ~ ./\. --...~- ~~.~~~._~---..--.~-,-~=""'''"~ -..,. l~.t a ._:i!l!\fi -l:i~:;~ ",Iol~a if 1 !~ "Il~ili os '1--:0: Il> ~ 11- \I {;> ,g,] tit ~:rl ~ d .~. it -".,.- o:! ~ ~I~tll=:.e.. II a..".S" -l: -= ~ II' ~ ]"iJ:.a~ ~;..a~~ ATTACHMENT ONE AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87) EXCLUSIONS In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or government regulation. This includes building and zoning ordinances and also laws and regulations concerning: . land use · improvements on the land . land division · environmental protection This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at policy date. This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. 2. The right to take the land by condemning it, unless: · a notice of exercising the right appears in the public records on the Policy Date · the taking happened prior to the Policy Date and is binding on you if you bought the land without knowledge of the taking In addition to the Exclusions, you are not insured against loss, costs, attorneys' fees, and the expenses resulting from: 1. Any rights, interests, or claims of parties in possession of the land not shown by the public records. 2. Any,easements or liens not shown by the public records. This does not limit the lien coverage in Item 8 of Covered Title Risks. 3. Title Risks: · that are created, allowed, or agreed to by you · that are known to you. but not to us, on the Policy Date- unless they appeared in the public records . that result in no loss to. you · that first affect your title after the Policy Date - this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks 4. Failure to pay value for your title. 5. Lack ofa right: · to any land outside the area specifically described and referred to in Item 3 of Schedule A or · in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. 3. Any facts about the land which a correct survey would disclose and which are not shown by the public records. This does not limit the furced removal coverage in Item 12 of Covered Title Risks. 4. Any water rights or claims or title to water in or under the land, whether or not shown by the public records. Attaclunent One (11/17/06) ATTACHMENT ONE (CONTINUED) CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY - 1990 EXCLUSIONS FROM COVERAGE The fullowing matters are expressly excluded from the coverage of this'policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: I. (a) Any law, ordinance or governmental regulation (including but not limited to building and 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 improveruLnt 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 mliess notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insuroo 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 instrred claimant had paid value fur the insured mortgage or fur the estate or interest insured by this policy. 4. Unenforceability of the lien of the instrred 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 unenfurceability of the lien of the insured mortgage, or claim thereot: 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 instrred the estate or 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. SCHEDULE B, PART I 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 I. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 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 publj.c records but which could be ascertained by an inspection of tlie land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereo( 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 thereot; ( 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. Attachment One (11/17/06) ATTACHMENT ONE (CONTINUED) AMERICAN LAND TITLE ASSOCIATION LOAN POllCY (10-17-92) WITH A.L.T.A. ENDORSEMENT-FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereflfier erected on the land; (ill) a separation in ownership or a change in the dimensions or area of the land or any parcel of whi~h 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 tllercof or a notice ofa defect, lien or c.'ncumbrance 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 lDlless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other IDattfrs: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and hot disclosed in writing to the Company by the insured cl~ant prior to the date the insured claimant became an insured WIder this policy; ( c) T1esulting in no loss or damage to the insured claimant; (d) a~aching or created subsequent to Date of Policy (except to the t<Xtent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or . The above policy form may be issued to affurd 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 ftom Coverage: material or to the extent insurance is afforded herein as to assessments for street improvements WIder construction or completed at Date of Policy); or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Unenfurceability 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 oftheindebtahless, to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenrorceability of the lien of the insured mortgage, or claim thereof: which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (ill) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or ajudgement or lien creditor. EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedingS, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof 3. Easements, liens or encumbrances, or claims thereof: not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or ex.ceptions 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. Attachment One (11/17/06) 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 this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement L'fectoo on thL Land; (iii) the subdivision ofland; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1 (a) does notmodifY or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1 (b) does not modifY or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modifY or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) Created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; The above policy form may be issued to affurd 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: ( c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modlly or limit the coverage provided under Covered Risk 11, 13, or 14); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value fur the Insured Mortgage. 4. U nenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated. 5. Invalidity or unenfurceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usmy or any consumer credit protection or truth-in-lending law. 6. Any claim, by reason of the operation offederal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer fur any reason not stated in Covered Risk 13 (b) of this policy. . 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modifY or limit the coverage provided under Covered Risk 1l(b). EXCEYfIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encwnbrances, or claims t.hereo( not shown by the Public Records. 4. Any encroachment, encmnbrance, violation, variation, or adverse circwnstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; ( c) water rights, claims or title to water, whether or not the matters excepted under ( a), (b), or ( c) are shown by the Public Records. Attachment One (11/17/06) ATTACHMENT ONE (CONTINUED) AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10-17-92) EXCLUSIONS FROM COVERAGE 3. Defects, liens, encumbrances, adverse claims, or other matta's: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; ( c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy, or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the ooate or interest insured by this policy. 4. Any claim. which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the :fuilure: (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 following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but 'not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien. or encmnbrance 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. 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 po~cy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Tax6. or assessments which are not shown as existing liens by 3. Easements, liens or encumbrances, or claims iliereoi; not shown ilie records of any taxing auiliority 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 oilier fucts 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 exceptions in 2. Anyfacts, 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 oftlie land or which may be asserted by persons in possession excepted under (a), (b) or ( c) are shown by the public records. thereof Attaclunent One (11/17/06) 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 this PO?cy, and the Company will.not pay loss or damage, costs, attorneys' fees, or expenses that anse by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision ofland; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. Ibis Exclusion 1 (a) does notmodi1Y or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. Ibis Exclusion 1 (b) does not modifY or limit the coverage provided under Covered Risk 6. ' 2. Rights of eminent domain. Ibis Exclusion does not modifY or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encwnbrances, adverse claims, or other matters (a) Created, suffered, asswned, or agreed to by the Insmed Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insmed Claimant and not disclosed in writing to the Company by the Insmed Claimant prior to the date the Insmed Claimant became an Insured under this policy; ( c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modifY or limit the coverage provided under Covered Risk 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insmed Ctaimant had paid value fur the Title. 4. Any claim, by reason of the operation offederalbankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer fur any reason not stated in Covered Risk 9 of this policy. 5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instnunent of transfer in the Public Records that vests Title as shown in Schedule A. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEYfIONS FROM COVERAGE This po~cy does not insme against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of: 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown in the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encmnbrances, or claims thereof; not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land smvey of the Land and that are not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereot; ( 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. Attachment One (11/17/06) ATTACHMENT ONE (CONTINUED) CLTA HOMEOWNER'S POllCY OF TITLE INSURANCE (10-22-03) ALTA HOMEOWNER'S POllCY OF TITLE INSURANCE (10-22-03) EXCLUSIONS In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or government regulation. This includes ordinances, laws and regulations concerning: a building b. ~ning c. Land use d. improvements on Land e. Land division f environmental protection This Exclusion does not apply to violations or the enforcement of these matters if notice of the violation or enforcement appears in the Public Records at the Policy Date. This Exclusion does not limit the coverage described in Covered Risk 14, 15, 16, 17 or 24. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Bxclusion does not apply to violations ofbuilding codes if notice of the violation appears in the Public Records at the Policy Date. 3. The right to take the Land by condemning it, unless: a. notice of exercising the right appears in the Public Records at the Policy Date; or b. the taking happened befure the Policy Date and is binding on You if You bought the Land without Knowing of the taking. 4. Risks: a. that are created, allowed, or agreed to by Yon, whether or not they appear in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they appear in the Public Records at the Policy Date; c. that result in no loss to You; or d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.d, 22, 23, 24 or 25. 5. Failure to pay value for Your Title. 6. Lack ofa right: a to any Land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limitthe coverage described in Covered Risk 11 or 18. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as fullows: · For Covered Risk 14,15,16 and 18, Your Deductible AmOlmt and Our Maximum Dollar Limit of liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as fullows: Your Deductible Amount Our Maximum Dollar Limit of liability Covered Risk 14: 1.00% of Policy Amount or $ 2.500.00 (whichever is less) Covered Risk 15: $ 10.000.00 1.00% of Policy Amount or $ 5.000.00 (whichever is less) Covered Risk 16: $ 25.000.00 1.00% of Policy Amount or $ 5.000.00 (whichever is less) Covered Risk 18: $ 25.000.00 .1.00% of Policy Amount or $ 2.500.00 (whichever is less) $ 5.000.00 Attachment One (11/17/06) ATTACBl\fENT ONE (CONTINUED) ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (10/13/01) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by r~on of 1. (a) Any law, ordinance or governmental regulation (including but not limited to zoning laws, ordinances, or regulations) restrictmg,- reguiaiing, prohibiting or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions or location of any improvements now or hereafter erected on the Land; (ill) a separation in ownership or a change in the dimensions or areas 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 encwnbrance resulting from a violation or alleged violation affecting the Land has been recorded in the Public Records at Date of Policy. This exclusion does not limit the coverage provided Wlder Covered Risks 12, 13, 14, and 16 of this 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 encwnbrance resulting from a violation or alleged violation affecting the Land has been recorded in the Public Records at Date of Policy. This exclusion does not limit the coverage provided Wlder Covered Risks 12, 13, 14, and 16 of this 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 prio* to Date of Policy which would be binding on the rights of a purchaser for value without Knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, asswned or agreed to by the Insured Cla#nant; (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 Insu'red Wlder this policy; ( c) resulting in no loss damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (this paragraph does limit the coverage provided Wlder Covered Risks 8,16,18, 19,20,21,22,23,24,25 and 26); or (e) resulting in loss or damage which would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage ha:atl~eof the inability or fuilure of the Insured at Date of Policy, or the inability or Mure of any subsequent owner ofilie indebtedness, to comply with applicable doing business laws of the state in which the Land is situated 5. Invalidity or Wlenforceability of the lien of the Insured Mortgage, or claim thereot: which arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, except as provided in Covered Risk 27, or any conswner credit protection or truth in lending law. 6. Real property taxes or assessments of any governmental authority which become a lien on the Land subsequent to Date of Policy. This exclusion does not limit the coverage provided WlderCoveredRisks 7, 8(e) and 26. 7. Any claim of invalidity, Wlenforceability or lack of priority of the lien of ilie Insured Mortgage as to advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This exclusion does not limit the coverage provided in Covered Risk 8. 8. Lack of priority of the lien of the Insured Mortgage as to each and every advance made after Date of Policy, and all interest charged thereon, over liens, encwnbrances and other matters affecting the title, the existence of which are Known to the Insured at: (a) The time of the advance; or (b) The time a modification is made to the terms of the Insured Mortgage which changes the rate of interest charged, if the rate of interest is greater as a result of the modification than it would have been before the modification. This exclusion does not limit the coverage provided in Covered Risk 8. 9. The failure of the residential structure, or any portion thereof to have been constructed before, on or after Date of Policy in accordance with applicable building codes. 1bis exclusion does not apply to violations of building codes if notice of the violation appears in the Public Records at Date of Policy. Attachment One (11/17/06) Notice You may be 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 closed 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 Rdelitv National Title Grouo of Comoanies' Privacy 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 rPersonal 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 collect 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 sites; From the public records maintained by governmental entities that we either obtain directly from those 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 need such access ill 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 share 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 or representatives to provide you with services you have requested; . to third-party contractors or service providers who provide 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 agreement, 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 drcumstances, to find out to whom your Personal Information has been disclosed. Also, certain states afford you the right to request correction, amendment or deletion of your Personal Information. We reserve the right, where permitted by law, to charge a reasonable fee to cover the costs incurred in responding to such requests. All requests must be made in writing to the following address: Rdelity National Title Group, Inc. Privacy Compliance Officer 601 Riverside Avenue Jacksonville, R. 32204 Multiple Products or Services If we provide you with more than one financial product or service, you may receive more than one privacy notice from us. We apologize for any inconvenience this may cause you. Privacy Statement (privacy) (11/05) Report number :80751 Date : 04/18/2007 ~ FIRST AMERICAN ~,'l-'t..o1 Natural Hazard Disclosures Order Invoice DELIVER TO: CHICAGO Escrow Number: 98405933 Officer: MARY DICKERSON APN: 342-17-025 Subject Property: N/A SAN JUAN Rd CUPERTINO, CA, 95014 20100 STEVENS CREEK BL CUPERTINO, CA 95014 AUn: Escrow Date 04/18/2007 Product Name JCP Industry Standard Package Total $ 123.95 Please reference First American NHD Report Number 80751 on the check Demand is hereby made on the above referenced escrow for disclosure services. This demand is due and payable upon the close of escrow. If for any reason escrow is transferred to another account, please fax the new information to us at (800) 329-9527. We will submit the invoice to the new escrow company. If for any reason this escrow is canceled, please contact us immediately. We will forward the invoice to the responsible party Please return bottom portion with your payment. Please do not staple check to stub Make check payable to: First American Natural Hazard Disclosures Invoice 80751 P.O. Box 27429 AMOUNT DUE $ 123.95 Santa Ana, CA 92799 If there are any billing questions, please contact our customer service department at (800) 748-5233. Thank you. 0080751123959 JCP Property Disclosure .1 MAP COVER PAGE Natural Hazard Disclosure Report Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA ~4)JCP y~ropertv Disclosure Reports ~" APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 ~! ". -..j ) e'~(~, No 0 _f-.J~'8_ \Of>. \,.'. r__~ -l (Il ,\ ~ ~__~~n~~lbt~), ; d IMERCEDES/ II~ ~ /- l / \'.. ./~~ _.-~. '~-."---/"_. 1\", "~" , -- ~ -' ~........ .:......--.-. , I' .pi o .... -\ ,.#.// '-!./- i -\ '1,/ L -<:. ( 0 - --,~ '\i;.---- ------ \~ \ -' .~') I C RO ~.........""._-- ~,~, ~ :>--"'-...- -.-..----. -., .. . / I 1 ALM .i(j ;;0 I~ NOTE - This map is for general reference only. ANY USE OF THIS MAP IS AN ACKNOWLEDGEMENT AND AGREEMENT THAT ONLY THE INFORMATION ON THE STATUTORY FORM SHALL BE RELIED UPON FOR THE ACTUAL DISCLOSURES. ~ Subject Property o +1 0.25 0.5 I miles !SSSS:3 Special Flood Hazard Area c=J ,!l.rea of Potential Flooding, Dam Failure (<<;;';',.;.1 Very High Fire Hazard Severtty lone c=J \P,ljldland Area, Substantial Forest Fire Risk ~ Earthquake Fau~ lone K<..;.,>J Seismic Hazard lone, Landslide ~ Seismic Hazard lone, Liquefaction 200 Commerce Irvine CA 92602 Phone (800) 748 5233 Fax (800) 3299527 ~~JCP V~roperty Disclosure Reports ~.r JCP Property Disclosure Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 Statutory Natural Hazard Disclosure Statement The transferor and his or her agent(s) disclose the following information with the knowledge that even though this is not a warranty, prospective transferees may rely on this information in deciding whether and on what terms to purchase the subject property. Transferor hereby authorizes any agent(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. The following are representations made by the transferor and his or her agent(s) based on their knowledge and maps drawn by the State. This information is a disclosure and is not intended to be part of any contract between the transferee and the transferor. THIS REAL PROPERTY LIES WITHIN THE FOLLOWING HAZARDOUS AREA(S): A SPECIAL FLOOD HAZARD AREA (Any type Zone "A" or "V") designated by the Federal Emergency Management Agency. Yes No --1L- Do not know and information not available from local jurisdiction_ AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. Yes No --1L- Do not know and information not available from local jurisdiction_ A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. Yes No --1L- A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISK AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the state's responSibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. Yes ~ No --1L- AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. Yes No--1L- A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public Resources Code. Yes (Landslide Zone) _ Yes (Liquefaction Zone)_ No ..L Map not yet released by state _ THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY. TO OBTAIN INSURANCE. OR TO RECEiVE ASSISTANCE AFTER A DISASTER. THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFE ED BY A NATURAL DISASTER. TRANSFEREE(S) AND TRANSFEROR(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDiNG TH AZAI1D AN OTI:I HAZARDS THAT MAY AFFECT THE PROPERTY. ~. Zz,. p 1- Signature of Transferor (Seller) Date Signature of Transferor (Seller) Date Signature of Agent Date Signature of Agent Date Check only one of the following: o Transferor(s) and their agent(s) represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s) and agent(s). [K] Transferor(s) and their agent(s) acknowledge that they have exercised good faith in the selection of a third-party report provider as required in Civil Code Section 1103.7, and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third- party disclosure provider as a substituted disclosure pursuant to Civil Code Section 1103.4. Neither transferor(s) nor their agent(s) (1) has independently verified the information contained in this statement and report or (2) is personally aware of any errors or inaccuracies in the information contained on the statement This statement was prepared by the provider below: Third-Party Disclosure Provider(s) Date 04/18/2007 Rept No. 80751 Scott Roecklein, Sr. Vice President JCP Property Disclosure Natural Hazard Disclosures Transferee represents that he or she has read and understands this document I (We) also have read and understand the added local hazard. airport, 1915 Bond Act. Mello-Roos, military ordnance, commercial zoning, BCDC disclosure. energy efficiency disclosure, Megan's Law disclosures, as well as the mold, radon, meth lab, and endangered species advisories and the map cover page contained in this report Pursuant to Civil Code Section 1103:8. the representations made in this Naturai Hazard Disclosure Statement do not constitute all of the transferor's or agent's disclosure obligations in this transaction. Signature of Transferee(s) Date Signature of Transferee(s) Date Additional Signatures Required - See Section 4, TAX DISCLOSURE REPORT and Section 5 EnviroCheck™ Disclosure Report Statutory Form @2007 JCP Property Disclosure Natural Hazard Disclosures LLC 200 CommercE: IrVine. CA 92602 Phone: (800) 748 5233 Fax. (800) 329 9527 ~~JCP V~roperty Disclosure Reports ~" JCP Property Disclosure Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 Summary Declaration of Liability Provisions JCP Property Disclosure Natural Hazard Disclosures ("JCP"), a subsidiary of The First American Corporation, hereby declares that Recipients of a natural hazard disclosure report issued by a Member Company ("Report") pursuant to California Civil Code ~11 03 et seq. for a transaction are provided the following assurances and protections. Recipients . Buyers, Sellers and their respective real estate agents and brokers involved in the sale of the property for which the Report was issued. Member Companies . FANHD, Inc. . . California Property Disclosure . JCP reports . JCP Property Disclosure Reports Protections All Recipients of a Report shall enjoy the following assurances and protections if their Report contains an error which results in damages as defined in the Report ("Error") upon proper tender of the claim: (1) JCP will resolve the claim promptly and in good faith. (2) JCP will defend a Recipient against legal action brought against that Recipient as a result of the Error or otherwise resolve the Error without economic loss to the Recipient. (3) Recipients will enjoy the benefits of amounts received by JCP from its errors and omissions (UE&O") insurance carrier as a result of the Error. (4) To the extent that economic loss resulting from the Error is not paid by the E&O insurance proceeds, JCP shall be liable for any remaining loss. Recipients are entitled to rely on the provisions of the Report as of the close of escrow for the transaction for which said Report was issued. By: JCP PropertY Disclosure 04/18/2007 Scott Roecklein. Sr. Vice President Date: .a~JCP V~roperty Disclosure Reports ~" Index Page i (02007 JCP Property Disclosure Natural Hazard Disclosures LLC 200 Commerce Irvine CA 92602 Phone: (800) 748 5233 Fax (800) 329 9527 ~4)JCP y~roperty Disclosure Reports ~~, JCP Property Disclosure,Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 The JCP ReporFM Map Cover Page Statutory Form Confirmation of Coverage SUMMARY AND INDEX OF DISCLOSURES AND ADVISORIES I For a complete explanation of the disclosures summarized below, refer to the sections and pages indicated. SECTION 1 State level Statutory Zone Disclosures Determination Flood A SPECIAL FLOOD HAZARD AREA NOT IN . See Section 1 Page 1 AN AREA OF POTENTIAL FLOODING NOT IN See Section 1 Page 1 Fire A VERY HIGH FIRE HAZARD SEVERITY ZONE NOT IN See Section 1 Page 1 Seismic A WILDLAND FIRE AREA (SRA) AN EARTHQUAKE FAULT ZONE NOT IN See Section 1 Page 2 NOT WITHIN See Section 1 Page 2 A SEISMIC HAZARD LANDSLIDE ZONE NOT IN See Section 1 Page 2 A SEISMIC HAZARD LIQUEFACTION ZONE · NIA = The map is not yet released by the State. NOT IN See Section 1 Page 2 SECTION 2 County level Zone Disclosures FAULT DIKE FAILURE WITHIN See Section 2 Page 1 IN See Section 2 Page 1 NOT IN See Section 2 Page 1 NOT IN See Section 2 Page 1 NOT IN See Section 2 Page 1 LANDSLIDE LIQUEFACTION COMPRESSIBLE SOILS City level Zone Disclosures GEOLOGIC HAZARD ZONE FOOTHILL AREA 3 See Section 2 Page 3 Index Page i @2007 JCP Property Disclosure Natural Hazard Disclosures LLC 200 Commerce irvine. CA 92602 Phone: (800) 748 5233 Fax: (800) 329 9527 ~<)JCP y~roperty Disclosure Reports ~t', . JCP Property Disclosure,Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 SECTION 3 OTHER DISCLOSURES, ADVISORIES AND TERMS AND SERVICES Other Zone Disclosures Determination Commercial/Industrial LOCATED WITHIN 1 MILE OF A COMMERCIAL OR INDUSTRIAL SITE IN See Section 3 Page 1 Military Ordnance FORMER MILITARY ORDNANCE SITE DISCLOSURE AIRPORT NOISE DISCLOSURE NOT WITHIN See Section 3 Page 1 NOT WITHIN See Section 3 Page 2 NOT IN See Section 3 Page 2 See Section 3 Page 3 NOT IN See Section 3 Page 4 NOT IN See Section 3 Page 5 Airports AIRPORT INFLUENCE AREA Megan's Law San Francisco Bay Conservation and Development Commission Disclosure California Energy Commision Duct Sealing & Testing Advisories Methanphetamine Contaminated Property Disclosure Advisory See Section 3 Page 6 Mold Advisory See Section 3 Page 6 Radon Advisory See Section 3 Page 7 Endangered Species Advisory See Section 3 Page 8 Services Section SECTION 4 CALIFORNIA PROPERTY TAX DISCLOSURE REPORT <<Requires Additional Signature on Section 4, Page 1>> Summary of Current Property Tax Charges Notice of Special Tax and Assessment Index Page ii @2007 JCP Property Disclosure Natural Hazard Disclosures LLC 200 Commerce Irvine. CA 92602 Pllone: (800) 748 5233 Fax: (800) 329 9527 ~~JCP y~roperty Disclosure Reports ~,~ JCP Property Disclosure -Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 Pursuant to Section 1102.6b of the California Civil Code Accelerated Foreclosure Notice Senior Citizen Exemptions Explanation Mandatory Notice of Supplemental Property tax BiII(s) Pursuant to Section 1102. 6c of the California Civil Code SEE TAX REPORT TABLE OF CONTENTS Property Tax Estimator Supplemental Tax Bill Estimator Description of Current Property Tax Charges SECTION 5 The JCP PROPERTY DISCLOSURE ENVIROCHECK ReporFM <<Requires Additional Signature on Section 5, Page 1>> State level Environmental Disclosures LEAKING UNDERGROUND STORAGE TANKS OTHER LISTED OR REGULATED SITES See EnviroCheck Index Page iii @2007 JCP Property Disclosure Natural Hazard Disclosures LLC 200 Commerce Irvine. CA 92602 Pllone: (800) 748 5233 Fax (800) 329 9527 ~~JCP y~roperty Disclosure Reports ~'r JCP Property Disclosure,Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 SECTION 1 JCP STATUTORY MAP READING DETERMINA liONS AND DISCUSSIONS SUMMARY The statutory Natural Hazard Disclosure Statement on page one of this report does not provide for informing purchasers if the property is only partially within any of the delineated zones or provide additional flood zone information which could be very important to the disclosure process. This summary of JCP's map reading used to complete the statutory form in this report is provided here to give buyers the additional information they may need to help them in the decision making process and to place the information in perspective. o 0 0 SPECIAL FLOOD HAZARD AREA 0 0 0 Determination NOT IN a Special Flood Hazard Area. IN a FEMA-designated Flood Zone S, D. If the property is located in or partially in any Zone A or V, lenders are federally required to have homeowners purchase and maintain flood insurance. Discussion Property in a Special Flood Hazard Area "N or "V' is subject to flooding in a "100-year rainstorm." Federally connected lenders are required to have homeowners maintain flood insurance. in these zones. A 100-year flood occurs on average once every 100 years, but may not occur in 1,000 years or may occur in successive years. Other types of flooding. such as dam failure, are not considered in developing these zones. In some cases, the insurance requirement may be waived or modified by obtaining a "Letter of Map Revision" (LOMR) or "Letter of Map Amendment'! (LOMA) from the Federal Emergency Management Agency (FEMA). This might be possible where flooding is shallow and fill was placed on the site, appropriate flood controi measures were taken, or only the lot and no part of the structure is in the zone. Contact FEMA directly for more information. Flood insurance for properties in Zones B, C. X or D is available but is not required. For more information about flood zones, visit htto:llwww.f1oodsmart.Qovlfloodsmart/oaQes/riskassesmentlfloodzonesdefined.iso Zone B: Area of moderate flood risk. These are areas between the "100" and "500" year flood-risk levels. Zones C, D: NOT IN an area of "100-year" flooding. Area of minimal (Zone C) or undetermined (Zone D) flood hazard. PUBLIC RECORD: Official Flood Insurance Rate Maps ("FIRM") compiled and issued by FEMA pursuant to 42 United States Code S4001 , et seq. o 0 0 AREA OF POTENTIAL FLOODING (DAM FAILURE) 0 0 0 Determination Not in an area of potential dam inundation. Discussion These areas are subject to potential flooding in the event of a sudden and total failure of a dam and injury could occur as a result. Most areas are defined assuming an instantaneous dam failure with a full reservoir. However, dams rarely fail instantaneously anq reservoirs are not always filled to capacity. Not all dams in the state have inundation zones mapped. There may be exceptional conditions where such a map was not required by the OES; therefore, the zones are not delineated. PUBLIC RECORD: Official dam inundation maps adopted by The State of California Office of Emergency Services rOES") pursuant to Caiifornia Government Code S8589.5 o 0 0 VERY HIGH FIRE HAZARD SEVERITY ZONE (VHFHSZ) 0 0 0 Determ i nation Not in a very high fire hazard severity zone. Discussion VHFHSZs are defined by the California Department of Forestry and Fire Protection (CDF) and local fire authorities in "Local Responsibility Areas" where fire suppression is the responsibility of a local fire department. In these zones properties may have a higher risk for fire damage and are required to have a "Class A" roof for new construction or replacement of existing roofs. In addition, th.e property must be maintained in a fire-resistant condition through adequate vegetation clearance around and above the structure, spark screens on chimneys and stovepipes, leaf removal from roofs, and other basic fire-safety practices within 30 to 100 feet of a structure or up to the property line, or at a greater distance if required by state law, or local ordinance, rule, or regulation. Contact your fire department for a complete list of requirements and exceptions. Section 1 Page 1 @2007 JCP Property Disclosure Naturai I-Iazard Disclosures 200 Commerce Irvine. CA 92602 Phone. (800) 748 5233 Fax: (800) 329 9527 ~~JCP y~roperty Oisclosu,e Reports ~~, JCP Property Disclosure,Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 PUBLIC RECORD: Official maps issued by the California Department of Forestry and Fire Protection (CDF) pursuant to California Public Resources Code S 51178 Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA o 0 0 WILDLAND FIRE AREA (STATE RESPONSIBILITY AREA) 0 0 0 Determination Not in a state responsibility area. Discussion A wild land area where the CDF's fire protection services are responsible for suppressing fires is called a "State Responsibility Area" (SRA). These are generally rural areas where a significant wild land fire potential exists. Uniess the county has assumed the fire suppression responsibility or has an agreement with a local fire agency, property owners in an SRA are responsible for organizing structural fire protection services. Such information is not available on maps; therefore, it can't be provided here. Property owners in an SRA are required to maintain adequate vegetation clearance around and above the structure. spark screens on chimneys and stovepipes, and other basic fire-safety practices. Contact your fire department for a complete list of requirements and exceptions. PUBLIC RECORD: Official maps issued by the California Department of Forestry and Fire Protection (CDF) pursuant to California Public Resources Code S 4125. o 0 0 EARTHQUAKE FAULT ZONE 0 0 0 Determination Not in an earthquake fault zone designated pursuant to the Alquist-Priolo Act. Discussion Earthquake Fault Zones are delineated and adopted by California as part of the Alquist-Priolo Earthquake Fault Zone Act of 1972. Property in an Earthquake Fault Zone does not necessarily have a fault trace existing on the site. Earthquake Fault Zones are areas or bands delineated on both sides of known active earthquake faults. In some places, the zones are more than one-quarter of a mile wide. The potential for "fault rupture" damage (ground cracking along the fault trace) is relatively high only if a structure is located directly on a fault trace. If a structure is not on a fault trace, shaking will be the primary effect of an earthquake. During a major earthquake, shaking will be strong in the vicinity of the fault and may be strong at some distance from the fault depending on soil and bedrock conditions. It is generally accepted that properiy constructed wood-frame houses are resistant to shaking damage. PUBLIC RECORD: Official earthquake fault zone or special study zone maps approved by the State Geologist and issued by the California Department of Conservation, California Geological Survey pursuant to California Public Resources Code S2622. o 0 0 SEISMIC HAZARD MAPPING ACT ZONE 0 0 0 Determination Not in an area of potential liquefaction designated pursuant to the Seismic Hazard Mapping Act. Not in an area of earthquake-induced landsliding designated pursuant to the Seismic Hazard Mapping Act. Discussion Seismic Hazard Zone maps delineate areas subject to earthquake hazard"s. The hazards currently addressed are iiquefaction and earthquake induced landslides. Liquefaction Hazard Zones are areas where there is a potential for, or an historic occurrence of liquefaction. Liquefaction is a rare soil phenomenon that can occur when loose, water saturated, fine-grained sands, and silty sands that lie within 50 feet of the ground surface, are shaken in a significant earthquake. The soil temporarily becomes liquid-like and structures may settle unevenly. Earthquake-Induced Landslide Hazard Zones are areas where there has been a recent landslide, or where the local slope, geologicai. geotechnical, and ground moisture conditions indicate a potential for landslides as a resuit of earthquake shaking. PUBLIC RECORD: Official earthquake fault zone or special study zone maps approved by the State Geologist and issued by the California Department of Conservation, California Geological Survey pursuant to California Public Resources Code S2696. Section 1 Page 2 @2007 JCP Property Disclosure Natura! Hazard Disclosures 200 Commerce Irvine. CA 92602 Phone. (800) 748 5233 Fax (800) 3299527 .a4)JCP V~rDPerty Disclosure Reports ~~r JCP Property Disclosure, Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 SECTION 2 COUNTY AND CITY NATURAL HAZARD DISCLOSURE STATEMENT The following natural hazard disclosures are provided to give local-level Seismic Safety information for the subject property. This information may be used by the local jurisdiction relative to making decisions regarding new development or additional construction. The agencies and jurisdictions who develop the official maps do not necessarily define or delineate hazards in the same way. A site can be in a hazard zone from one source and not in a hazard zone from another source. Santa Clara County GeoloQic and Seismic Zone Determination Based on the officially adopted county-level Seismic Safety Element natural hazard maps, the subject property is: This property is IN a county-designated landslide hazard zone, not in a county-designated compressible soils hazard zone, not in a county-designated dike failure flooding hazard zone, not in a county-designated liquefaction hazard zone, within a county-designated fault rupture hazard zone. NOTE: If the site is in a locally mapped hazard zone or if information of concern exists in another source, the property may require a geologic study prior to any new or additional construction. The disclosures above are material facts and should prudently be disclosed to buyers in addition to the Statutory Natural Hazard Disclosures. Additional sources of information which are n.ot officially adopted, may be available at the local jurisdiction that are not reported here. SANTA CLARA COUNTY GEOLOGIC ZONES DISCUSSION The County of Santa Clara, separately from the State and Federal governments, has officially produced or adopted maps to delineate potential geologic and seismic hazards that are recognized at the local level. Those hazard maps are incorporated by reference into the Santa Clara County Code, adopted by the County Board of Supervisors in 2002. The locai-Ievel disclosure in this report was based on the following official County map(s) available in digital vector format: "County Geologic Hazard Zones Map," prepared by Santa Clara County Department of Planning (disclosure required by County Ordinance Sec C12-624). The hazard zones delineated on the above map source. in addition to the statutorily-required State and Federal hazard maps, are typically considered by the County when approving land use and development permit applications under County jurisdiction. Additional maps exist in the General Plan and other maps, including updated versions of the above-referenced map(s), may exist in the files of specific County departments. Those additional map sources were not consulted for this disclosure because parcel-level details cannot be resolved at the scale and quality of the available official map. or the map is inappropriate for application to this report, or the map has not yet been officially adopted and incorporated into the County's Safety Element As mapping technology advances, this company later may determine that some additional map sources become usable for parcel-level disclosure. The mapped County hazard zones represent evaiuations of generalized hazard information. Any specific site within a mapped zone could be at less or more relative risk than is indicated by the zone designation. If a site- specific evaluation is desired. this company recommends that a geotechnical consultant be retained to study the site and issue a report. The official County-level information addresses the potential geologic and seismic hazards itemized below: FAULT The County identifies Fault Rupture Hazard Zones as both "active" and "potentially active" fault zones as well as other faulting-related geologic features. Active faults are known to have experienced fault rupture in the last 11,000 years and are usually seismically active (produce earthquakes periodically). Potentially active faults are not seismically active, and it cannot be definitely proven that these faults have moved in the last 11.000 years. Potentially active faults far outnumber active faults in Santa Clara County. Because potentially active faults are included in the zone description. all Fault Rupture Hazard Zone are not necessarily equal to an Alquist-Priolo Earthquake Fault Zone which only includes active faults. LANDSLIDE Landslide Hazard Zones include areas with a high potential for earthquake-induced landslides. It does not necessarily mean that landslides exist on the property or that landsliding is imminent or probable in the area. It does mean that the designated area has a greater chance of landsliding than properties in flat-lying areas. The County has also included a United States Geological Survey Report and State of California Geologic Survey Earthquake-Induced Landslide Hazard Zones into the zone description. These include areas where there has been a recent landslide, or where locai slope, geological, geotechnical, and ground moisture conditions indicate a potential for landslides as a result of earthquake shaking. LIQUEFACTION Section 2 Page 1 '92007 JCP Property Disclosure Natural Hazard Disclosures 200 Commerce IrVine, CA 92602 Pllone (800) 748 5233 Fax: (800) 329 9527 A~JCP V~rOP8rty Disclosure Reports ~~, JCP Property Disclosure,Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 Liquefaction Hazard Zones include areas the State of California Geological Survey has defined as areas where there is a potential for. or an historical occurrence of liquefaction. Liquefaction is a rare soil phenomenon that can occur when loose, water saturated, fine-grained sands and silty sands that lie within 50 feet of the ground surface are shaken in a significant earthquake. The soil temporarily becomes liquid-like and structures may settle unevenly. The County has also included zones of liquefaction susceptibility from a United States Geological Survey Report of soil deposits that may be prone to liquefaction. Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA COMPRESSIBLE SOILS Compressible Soils Zones include areas where there is a chance that the ground will settle locally during severe shaking due to the peaty-type soils in these area compressing. Riskof injury is relatively low in these areas as a result of settlement alone. DIKE FAILURE Dike Failure Fiooding Zones include areas where there is a significant chance of flooding following a large earthquake if the perimeter dike systems of the bay fail. Section 2 Page 2 @2007 JCP Property Disclosure Natural Hazard Disclosures 200 Commerce Irvine. CA 92602 Phone (800) 748 5233 Fax: (800) 329 9527 ~~JCP V~roperty Disclosure Reports ~" JCP Property Disclosure,Reports The JCP Natural Hazard Disclosure Report fOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 City of CUPERTINO GeoloQic and Seismic Zone Determination Based on the officially adopted city-level Seismic Safety Element natural hazard maps, the subject property is: This property is in FOOTHILL AREA 3 for City Geologic. CITY OF CUPERTINO GEOLOGIC ZONES DISCUSSION The City of Cupertino. separately from the County, State and Federal governments, has officially produced or adopted maps to delineate twelve geologic or seismic hazard areas. These areas include potential hazards such as faults, liquefaction. landslides, and flood inundation that are recognized at the local level. All areas of Cupertino have a moderate to locally severe ground shaking potential if a significant earthquake occurs on the San Andreas, Berrocal, or Monte Vista Faults, this hazard mapping is incorporated into the Safety Element of the General Plan. adopted by the Cupertino City Council in 1993. The local-level disclosure in this report was based on the following official local map(s): "General Plan Study: Geologic and Seismic Hazard Map" prepared by William Cotton & Associates for the City of Cupertino Planning Department (incorporated by reference into the General Plan as Figure 6-D "Seismic and geologic Hazards"). The hazard zones delineated on the above map source, in addition to the statutorily-required State and Federal hazard maps, are typically considered by the City when approving land use and development permit applications under City jurisdiction. Additional maps exist in the General Plan and other maps, including updated versions of the above-referenced map(s), may exist in the files of specific municipal departments. Those additional map sources .were not consulted for this disclosure because parcel-level details cannot be resolved at the scale and quality of the available official map, or the map is inappropriate for application to this report. or the map has not yet been officially adopted and incorporated into the City's Safety Element. As mapping technology advances, this company later may determine that some additional map sources become usable for parcel-level disclosure. The mapped City hazard zones may have been compiled from multiple sources of differing quality and, In some instances. have been generalized and simplified. No special field studies were conducted to verify the information for this subject property. Any specific site within a mapped zone could be at less or more relative risk than is indicated by the zone designation. If a site-specific evaluation is desired, this company recommends that a geotechnical consultant be retained to study the site and issue a report. The risk of exposure can be reduced through appropriate land-use planning, development engineering, and building construction practices. City V5. County Information: County and city-level information sources are developed independently of each other and do not necessarily define or delineate hazards in the same way. A site can be in a geologic hazard zone according to the city and not in the corresponding zone according to the county and vice versa. Cities and counties may use other information in addition to their General Plan sources to determine if hazards exist at a site or which sites may require geologic studies prior to new or additional construction. Such information could be a material fact to be disclosed in addition to General Plan information. Such potential sources are not reviewed in this report. To investigate other sources of natural hazard information that may be available and used at the local level, contact the Engineering, Planning or Buiiding Departments in the subject City and County. The official City-level information addresses the potential natural hazards itemized below: GEOLOGIC HAZARD ZONES Valley Floor Terrain Hazard Zone includes the nearly flat. urbanized valley floor. the steep walls of Stevens Creek Canyon. the low rolling foothills area near the St. Joseph Seminary and Monte Vista substation. . VF-1, 2, & 3: Areas with a low to moderate liquefaction potentiai and areas of potential flood inundation along Calabazas Creek. . VF-4: Valley floor areas of moderate to high potential for lateral spreading and ground lurching, low moderate to high potential for lateral spreading and ground lurching, and low to moderate liquefaction potential. . VF-5: Areas along steep Stevens Creek canyon walls with moderate to high landslide potential, to moderate liquefaction potential, and moderate to high potentiai for flood inundation along Stevens and Calabazas Creeks. VF-6: Areas within 300 feet east of the Monte Vista Fault with a moderate potential for ground rupture (cracking along a fault trace). Foothill Terrain Hazard Zone includes the gentle to steep, partially urbanized hillsides located west of Valley Floor areas. east of Montebello Ridge. . F.1 refers to foothill areas with moderate to high landslide potential if slopes are greater than 15%. F-2 refers to foothill areas with moderate to high landslide potential if siopes are greater than 15%, and moderate potential for ground rupture (cracking along a fault trace) because properties in this zone are approximately 600 to 2000 feet west of the Monte Vista Fault. F-3 refers to foothill areas with moderate to high landslide potential if slopes are greater than 15%, and moderate potential for ground rupture (cracking along a fault trace) because properties in this zone are within about 600 feet west of the Monte Vista Fault. Mountain Terrain Hazard Zone includes moderate to steep hill-slide areas of Montebello Ridge and Santa Cruz Mountains. ~ M-1 refers to mountain areas with moderate to high landslide potential if slopes are greater than 15%. M-2 refers to mountain areas with a moderate to high landslide potential if slopes are greater than 15%. M-2 areas have a moderate potential for ground rupture (cracking along a fault trace) because they are between 600 and 2000 feel west of the Berrocal Fault. Section 2 Page 3 @2007 JCP Property Disciosure Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone (800) 748 5233 Fax. (800) 329 9527 ~4)JCP V~roperty Disclosure Reports ~'r JCP Property Disclosure -Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 M-3 refers to mountain areas with a moderate to high landslide potential if slopes are greater than 15%. In addition, M-3 areas have a moderate potential for ground rupture (cracking along a fault trace) if the property is within about 300 feet east or 000 feet west of the Berroeal Fault or a high potential for ground rupture if the property is within 600 feet of the San Andreas Fault. . Liquefaction, lurching, and lateral spreading refer to the effects of earthquake shaking on certain types of subsurface material. If the water table is close to the ground surface and the subsurface material is loose and lacks cohesion (sandy soils and sediments), the ground may become soft and liquid-like during earthquake shaking. . Areas of City level determined flood inundation are not included on this disciosure. Please see the National Flood Insurance Program disclosure in this report for a determination of flood hazard status. Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA o 0 0 END OF LOCAL AREA DISCLOSURES AND DISCUSSIONS SECTION 0 0 0 Section 2 Page 4 @2007 JCP Property Disclosure Natural Hazard Disclosures 200 Commerce irvine. CA 92e.02 Phone: (800) 748 5233 Fax (800) 329 9527 .a~JCP V~roperty Disclosure Reports ~", JCP Property Disclosure Reports The JCP Natural Hazard Discl~sure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 SECTION 3 FORMER MILITARY ORDNANCE SITE DISCLOSURE Determination The subject property is NOT WITHIN one mile of a Formerly Used Defense (FUD) site containing military ordnance. Discussion FUD sites can include sites with cQmmon industrial waste (such as fuels), ordnance or other warfare materiel, unsafe structures to be demolished, or debris for removal. NOTE: most FUDS sites do not contain unexploded ordnance. California Civil Code 1102 requires disclosure of those sites containing unexploded ordnance. "Military ordnance" is any kind of munition, explosive device/material or chemical agent used in military weapons. Unexploded ordnance are munitions that did not detonate. Only those FUD sites that the USACE has identified to contain Military Ordnance or have mitigation projects planned for them are disclosed in this report. Additional sites may be added as military installations are released under the Base Realignment and Closure (BRAC) Act. Active military sites are NOT included on the FUDS list. COMMERCIAL OR INDUSTRIAL ZONING DISCLOSURE Determination Based on publicly-available parcel zoning records only: The property IS within one-mile of a property that is zoned for industrial or commercial use. Discussion The seller of real property who has actual knowledge that the property is affected by or zoned to allow commercial or industrial use described in Section 731 a of the Code of Civil Procedure shall give written notice of that knowledge to purchasers as soon as practicable before transfer of title (California Civil Code Section 1102.17). The Code of Civil Procedure Section 731a defines industrial use as areas in which a city and/or county has established zones or districts under authority of law wherein certain manufacturing or commercial or airport uses are expressly permitted. The "Zoning Disclosure" made in this report DOES NOT purport to determine whether the subject property is or is not affected bv a commercial or industrial zone. As stated above, that determination is based solely upon ACTUAL KNOWLEDGE of the seller of the subject property. In an effort to help determine areas where this may be applicable, this disclosure identifies if a property exists within one mile of the seller's property that is zoned to allow for commercial or industrial use. Very commonly, a home will have in its vicinity one or more properties that are zoned for commercial or industrial use such as restaurants, gasoline stations, convenience stores, golf courses, country club etc. Section 3 Page 1 @2007 JCP Property Disclosure Naturill Hazard Disclosures 200 Commerce Irvine. CA 92(,02 Phone (800) 748 5233 Fax (800) 329 9527 A4)JCP y~roperty Disclosure Reports ~~, JCP Property Disclosure Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 AIRPORT INFLUENCE AREA DISCLOSURE DE~term i nation Based on certain mapped Airport Influence Areas determined by a County Airport Land Use Commission, the following determination can be made: The property is NOT IN an officially-designated Airport Influence Area (AlA) and is NOT WITHIN two (2) statute miles of an airport for which no AlA has been officially designated. ]Discussion Certain airports are not disclosed in this report. JCP has made a good faith effort to identify the airports covered under Section 1102.6a. Sources consulted include officiallan.d use maps and/or digital data made available by a governing ALUC or other designated government body. Most facilities for which an Airport Influence Area has been designated are included on the "California Airports List" maintained by the California Department of Transportation's Division of Aeronautics. Not disclosed in this report are public use airports that are not in the "California Airports List", airports that are physically located outside California, heliports and seaplane bases that do not have regularly scheduled commercial service. and private airports or military air facilities unless specifically identified in the "Caiifornia Airports List". If the seller has actual knowledge of an airport in the vicinity of the subject property that is not disclosed in this report, and that is material to the transaction, the seller should disclose this actual knowledge in writing to the buyer. JCP uses official land use maps and/or digitai.data made available by governing ALUC or other designated govemment body. Most facilities for which an Airport Influence Area has been designated are included on the "California Airports List" maintained by the California Department of Transportation's Division of Aeronautics. The inclusion of military and private airports varies by County. and heliports and seaplane bases are not induded, therefore, airports in these categories mayor may not be included in this disclosure. NOTE: Proximity to an airport does not necessarily mean that the property is exposed to significant aviation noise levels. Alternatively, there may be properties exposed to aviation noise that are greater than two miles from an airport. Factors that affect the level of aviation noise include weather, aircraft type and size, frequency of aircraft operations, airport layout. flight patterns or nighttime operations. Buyer should be aware that aviation noise levels can vary seasonally or change if airport usage changes. AIRPORT NOISE DISCLOSURE Determination Based on certain 65 decibel (dB) Community Noise Equivalent Level (CNEL) contour maps produced under the Federal Aviation Administration's. Airport Noise Compatibility Planning Program Part 150, the following determination has been made: The property IS NOT within a delineated 65 dB CNEL or greater aviation noise zone. Discussion The seller(s) of real property who has (have) actual knowledge that the property in the transaction is affected by airport use must give written notice of that knowledge, as soon as practicable, before transfer of title. (Caiifornia Civil Code, Section 1102.17). N'ot all airports have produced noise exposure maps. A property may be near or at some distance from an airport and not be within a d4~lineated noise exposure area, but still experience aviation noise. Unless 65dB CNEL contour maps are published, helipads and military sites are not included in this section of the report. NOTE: The Airport Noise Compatibility Planning Program is voluntary. Not all airports have elected to participate. Not all property in the vicinity of an airport is exposed to 65dB CNEL or greater average aviation noise levels. Conversely a property may be at some dista[lce from an airport and still experience aviation noise. JCP obtains updated maps once yearly. Purchasers should be aware that aviation noise levels can vary seasonally or change if airport usage changes after a map is published or after JCP receives the updated maps within the schedule set by JCP. JCP uses the most seasonally conservative noise exposures provided. Federal funding may be available to help airports implement noise reduction programs. Such programs vary and might include purchasing properties, rezoning, and insulating homes for sound within 65dB areas delineated on CNEL maps. Airport owners have also cooperated by imposing airport use restrictions that include curfews. modifying flight paths, and aircraft limitations. Section 3 Page 2 ~)2007 JCP Prooertv Disclosure Natural Hazard Disclosures 200 Commerce Irvine. CA 92602 Phone: 1.800) 748 5233 Fax (800) 329 9527 It::~JCP V~roperty Disclosu,e Reports ~..' JCP Property Disclosure Reports The JCP Natural Hazard Disclpsure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 REGISTERED SEX OFFENDER DATABASE DISCLOSURE ("MEGAN'S LAW") Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. California law (AS 488), signed by the Governor on September 24, 2004, provides the public with Internet access to detailed information on registered sex offenders. The Sex Offender Tracking Program of the California Department of Justice (DOJ) maintains the database of the locations of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.46 of the Penal Code. The online database is updated with data provided by local sheriff and police agencies on an ongoing basis. It presents offender information in 13 languages; may be searched by a sex offender's specific name, zip code. or city/county; provides access to detailed personal profile information on each registrant; and inciudes a map of your neighborhood. California Department of Justice Information Sources: Megan's Law Sex Offender Locator Web Site: htto:/Iwww.meaanslaw.ca.aov California Department of Justice Megan's Law Email Address: meaansiaw@doLca.Qov Local Information Locations For The Subject Property: All sheriffs' departments and every police department in jurisdictions with a population of 200,000 or more are required to make a CD-ROM avaiiable free to the public for viewing. Although not required, many other law enforcement departments in smaller jurisdictions make the CD- ROM availab'le as well. Please call your local law enforcement department to investigate availability. According to current records your local law enforcement department phone number is (408) 277-8900. I The following are the law enforcement departments in your county that are REQUIRED to make information available: Santa Clara County Sheriffs Department San Jose Police Department (408) 299-2211 (408) 277-8900 Explanation and How to Obtain Information For over 50 years, California has required certain sex offenders to register with their local law enforcement agencies. However, information on the whereabouts of the sex offenders was not available to the public until implementation of the Child Molester Identification Line in July 1995. The available information was expanded by California's "Megan's Law" in 1996 (Chapter 908, Stats. of 1996). Megan's Law provides certain information on the whereabouts of "serious" and "high-risk" sex offenders. The law specifically prohibits using the information to harass or commit any crime against the offender. The information on a registered sex offender includes: name and known aliases; age and sex; physical description, including scars, marks and tattoos; photograph. if available; crimes resulting in registration; county of residence; and zip code (from last registration). Accessing the online database requires your agreement with the DOJ's terms of use web page. Section 3 Page 3 <1')2007 JCP Property Disclosure Natural Hazard Disclosures 200 Commerce Irvine. CA 9:'60: Phone (800) 748 5233 FilX (800) 329 9577 .a~JCP V~roperty Disclosure Reports ~'" JCP Property Disclosure Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 SAN FRANCISCO SAY CONSERVATION AND DEVELOPMENT COMMISSION DISCLOSURE (Applicable Only in Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma Counties) Determination Based on certain mapped coastal zones determined by the San Francisco Bay Conservation and Development Commission (BCDC), the following determinatfon can be made: The property is NOT IN the jurisdiction of the San Francisco Bay Conservation and Development Commission, as defined in Section 66620 of the Government Code. NOTE: The official BCDC jurisdictional maps issued by the BCDC are electronic documents generally of low resolution and poor quality. As defined by the BCDC, its jurisdiction spans a complexity of ever-changing geographic and topographic environments including: (1) tidal areas of San Francisco Bay; (2) a 100-foot-wide shoreline band that extends inland from the upper edge of the BCDC's San Francisco Bay jurisdiction; (3) certain named waterways that empty into San Francisco Bay; (4) salt ponds adjacent to the Bay; and (5) certain managed wetlands as well as the Suisun Marsh. The BCDC-issued maps are not adequate for determining confidently the proximity of the BCDC-defined jurisdictional boundaries to nearby parcels. Therefore, all parties in the transaction are advised that there is some uncertainty inherent in the "NOT IN" determination made above. Discussion As of July 1, 2005, Civil Code Section 1103.4 mandates disclosure to buyers of certain real estate if that property is located within the jurisdictional boundaries of the BCDC. Notice is required to prevent unknowing violations of the law by new owners who were unaware that certain activities on the real property are subject to the BCDC's permit requirements. The BCDC has issued maps for some parts of its jurisdiction, including the San Francisco Bay Plan maps (California Code of Regulations, Title 14, Section 10121) and the Suisun Marsh Plan maps (Nejedly-Bagley-Z'berg Suisun Marsh Preservation Act of 1974). Official maps have not been issued for other parts of the BCDC jurisdiction (McAteer-Petris Act areas) because the Bay is a highly dynamic environment and the shoreline changes over time (in part because the sea level also changes over time). In those areas where official BCDC maps are not available or along the edges of the BCDC's mapped jurisdiction, to meet the disclosure requirements, this report will indicate that the property "could be within" the BCDC's jurisdiction and that a location- specific jurisdictional determination should be made by consulting the BCDC. This determination of "could be within" the BCDC's jurisdiction was recommended by the BCDC in that certain Memo entitled "Guidance on Determining Commission Jurisdiction Pursuant to Senate Bill 1568" issued in February 2005 and posted on the BCDC website. Section 3 Page 4 @2007 JCP ProDertv Disclosure Natural Hazard Disciosures 200 Commerce irvine. CA 92f,02 Phone: 1800) 748 5233 Fax (800) 329 9527 .ta:~JCP V~ropertyDiSClosure Reports ~'" JCP Property Disclosure Reports The JCP Natural Hazard Discl,osure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 California Energy Commission Duct Sealing & Testing Requirement Based on certain climate zone maps issued by the California Energy Commission, the following determination is made: Determination: The Property is NOT IN a designated climate zone in which properties are usually subject to duct sealing and testing requirements set forth by the California Energy Commission. Discussion: According to the California Energy Commission ("CEC") most California homes have improperly sealed central air conditioning and heating system ducts such that approximately 30 percent of the conditioned air actually leaks outside the home. Effective October 1, 2005, in order to combat this waste of energy and money, the CEC set forth new duct sealing and testing requirements in Title 24 of the Building Energy Efficiency Standards. Title 24 requires that, in specific climate zones as designated by the CEC, when a central air conditioner or furnace is installed or replaced, homeowners must have ducts tested for leaks. Ducts found to leak more than 15 percent or more must be repaired. Once a contractor tests and fixes these ducts, you must have an approved third-party verifier determine that the ducts have been properly sealed. The CEC cautions homeowners that a contractor who fails to obtain a required building permit and fails to test and repair your ducts "is violating the law and exposing you to additional costs and liability." If you do not obtain a permit, you may be required to bring your home into compliance with code requirements for that work and may incur additional penalties and fines that have to be paid prior to selling your home. Remember that you have a duty to disclose whether you obtained required permits for work performed to prospective buyers and appraisers. Local governments may mandate more stringent requirements; however, please be advised that duct sealing and associated testing is generally not required: . . . if homes are located in specific coastal climates; . when systems have less than 40 feet of ductwork in unconditioned spaces such as attics, garages, crawlspaces, basements, or outside the building; or . when ducts are constructed, insulated, or sealed with asbestos. Please note there are specific alternatives that allow high efficiency equipment and added .duct insulation to be installed instead of fixing duct leaks. Please also be advised that there are separate regulations which govern duct insulation levels required by climate zone and HVAC systellJ. For more information on these requirements, please contact the California Energy Commission or visit the official CEC "2005 HVAC Change-Out Information" portal at http://www.enerQy.ca.Qov/title24/chanqeout/ Section 3 Page 5 @2007 JCP Property Disclosure Natural Hazard Disclosures 200 Commerce IrVine, CA 92602 Phone. (800) 748 5233 F~x (800) 328 8527 #i:4}JCP V~roperty Disclosure Reports "..' JCP Property Disclosure Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 ADVISORIES METHAMPHETAMINE CONTAMINATED PROPERTY DISCLOSURE ADVISORY According to the "Methamphetamine Contaminated Property Cleanup Act of 2005" a property owner must disclose in writing to a prospective buyer if local health officials have issued an order prohibiting the use or occupancy of a property contaminated by meth lab activity. The owner must also give a copy of the pending order to the buyer to acknowledge receipt in writing. Failure to comply with these requirements may subject an owner to, among other things, a civil penalty up to $5,000. Aside from disclosure requirements, this new law also sets forth procedures for local authorities to deal with meth-contaminated properties, including the filing of a lien against a property until the owner cleans up the contamination or pays for the cleanup costs. MOLD ADVISORY The Buyer is hereby advised that naturally occurring molds may exist both inside and outside of any home and may not be visible to casual inspection. Persons exposed to extensive mold levels can become sensitized and develop allergies to the mold or other health problems. Extensive mold growth can damage a structure and its contents. All prospective purchasers of residential and commercial property are advised to thoroughly inspect the subject property for mold. Be sure to inspect the property inside and out for sources of excess moisture, current water leaks and evidence of past water damage. As part of a buyer's physical inspection of the condition of a property, the buyer may consider engaging an appropriate and qualified professional to inspect and test for the presence of harmful molds and to advise the buyer of any potential risk and options available. This advisory is not a disclosure of whether harmful mold conditions exist at a property or not. JCP has not performed testinq or inspections of any kind. Any use of this form is acknowledgement and acceptance that JCP does not disclose, warrant or indemnify mold conditions at a property in any way and is not responsible in any way for mold conditions that may exist. Information is available from the California Department of Health Services Indoor Air Quality Section fact sheet entitled, "Mold in My Home: What Do I Do?" The fact sheet is available at www.cal-iaq.org or by calling (510) 540-2476. The Toxic Mold Protection Act of 2001 requires that information be developed regarding the potential issues surrounding naturally occurring molds within a home. Information was written by environmental authorities for inclusion in the Environmental Hazards: A Guide for Homeowners, Buyers, Landlords and Tenants booklet developed by the California Environmental Protection Agency and the Department of Health Services. It is found in Chapter VI of that booklet, and includes references to sources for additional information. For local assistance, contact your county or city Department of Health, Housing, or Environmental Health. Section 3 Page 6 @2007 JCP Property Disclosure Natural Hazard Disclosures 200 Commerce Irvine. CA 92e.02 Phone (800) 748 5233 Fax (800) 329 9527 A4)JCP y~roperty Disclosure Reports ~" JCP Property Disclosure Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 RADON ADVISORY For its Radon Advisory, JCP uses the updated assessment of radon exposure published in 1999 by the Lawrence Berkeley National Laboratory (LBNL) and Columbia University, under support from the U.S. Environmental Protection Agency (EPA), the National Science Foundation, and the US Department of Energy (published online at http://eetd.lbLgovIlEP/high- radon/USgm.htm). Based on this recent assessment, JCP's radon advisory is as follows: All of California's 58 counties have a predicted median annual-average living-area concentration of radon below 2.0 pC ilL (picocuries per liter of indoor air) -- which is well below the EPA's guideline level of 4 pCi/L and equivalent to the lowest hazard zone (Zone 3) on the 1993 EPA Map of Radon Zones The "median concentration" means that half of the homes in a county are expected to be below this value and half to be above it. All houses contain some radon, and a few houses will contain much more than the median concentration. The only way to accuratelv assess lonq-term exposure to radon in a specific house is throuqh lonq-term testinq (samplinq the indoor air for a year or more). The EPA recommends that all homes be tested for radon. Columbia University's "Radon Project" website offers help to homeowners in assessing the cost vs. benefit of testing a specific house for radon or modifying it for radon reduction (see http://www.stat.columbia.edu/radon/): NOTE: JCP does not use the EPA's 1993 map for advisory purposes because that map shows "short-term" radon exposure averaged by county. It was based on ';screening measurements" that were intentionally designed to sample the worst-case conditions for indoor air in US homes--using spot checks (sampling for just a few days), in the poorest air quality (with sealed doors and \('Iindows), at the worst time of the year (winter), in the worst part of the house (the basement, if one was available). These short-term, winter, basement measurements are both biased and variable compared to long-term radon concentrations (averaged over a year) in the living area of a house. Long-term concentrations are a more accurate way to judge the long-term health risk from radon. For the above reasons, the EPA expressly disclaims the use of its 1993 map for determining whether any house should be tested for radon, and authorizes no other use of its map for property-specific purposes. For additional information about EPA guidelines and radon testing, see "Chapter VII--Radon", in the California Department of Real Estate's Residential Environmental Hazards: A Guide for Homeowners, Homebuyers, Landlords and Tenants. Section 3 Page 7 @2007 JCP Property Disclosure Natural Hazard Disclosures 200 Commerce Irvine, CA 92F,02 Phone: (800) 748 5233 Fax (800) 329 9527 A~JCP y~roperty Disclosure Reports ~", JCP Property Disclosure Reports The JCP Natural Hazard Disclosure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 Endangered Species Act Advisory The Federal Endangered Species Act of 1973 ("ESA"), as amended, requires that plant and animal species identified and classified ("listed") by the Federal government as "threatened" or "endangered" be protected under U.S. law. Areas of habitat considered essential to the conservation of a listed species may be designated as "critical habitat" and may require special management considerations or protection. All threatened and endangered species -- even if critical habitat is not designated for them -- are equally afforded the full range of protections available under the ESA. In California alone, over 300 species of plants and animals have been designated under the ESA as threatened or endangered, and over 80 species have critical habitats designated for them. Most California counties are host to a dozen or more protected species and, in many cases. 10 or more species have desiqnated critical habitats within a county. ADVISORY An awareness of threatened and endangered species and/or critical habitats is not reasonably expected to be within the actual knowledge of a seller. No Federal rule, California statute, Department of Real Estate regulation, or other law requires a seller or seller's agent to disclose threatened or endangered species or critical habitats, or investigate their possible existence, on real property. Therefore, Buyer is advised that, prior to purchasing a vacant land parcel or other real property, Buyer should consider the need to investigate the existence of threatened or endangered species, or designated critical habitats, on or in the vicinity of the parcel, which could affect the use of the property or the success of any proposed (re )development. For more information Complete and current information about the threatened and endangered species in California that are Federally listed in each county -- including all critical habitats designated there -- is available on the website of the U.S. Fish & Wildlife Service, the Federal authority which has enforcement responsibility for the ESA. For Northern California visit: http://www.fws.gov/sacramento/es/spp _lists/auto _lisCform.cfm For Southern California visit: http://www.fws.gov/carlsbad/CFWO_Species_List.htm Section 3 Page 8 @2007 JCP Prooertv Disclosure Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone (800) 748 5233 Fax (800) 329 9527 ~~JCP V~ropertVDisClosure Reports ~~, JCP Property Disclosure Reports the JCP Natural Hazard Discl~sure Report FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 JCP Services Section · · Any use of this report is an acknowledgement of and an agreement to abide by the terms stated in this section. For the Natural Hazard Disclosures. JCP Property Disclosure (JCP) examines only the following maps: (a) NFIP Flood Insurance Rate Maps, (b) California Office of Emergency Services Dam Failure inundation- maps. (c) Real Estate: disclosure (CDF) fire maps. (d) Seismic Hazards Mapping Act maps, (e) geologic and seismic hazard maps adopted by the county as part of its General Plan's Safety Element, (f) geologic and seismic hazard maps adopted by the city as a part of its General Plan's Safety Element, (g) LOMR's or LOMA's (made available to us), for location of the above property as identified by the seller or seller's agent. JCP relies on these official sources for the information in this report and does not produce. maintain or verify the information. Our services include, where appropriate. use of the assessors rolls. cadastral-type maps, photographic enlargements of maps and various cartographic techniques to locate the site on the appropriate map. The determination is made as accurateiy as reasonably possible using these said maps. For purposes of defining property lines, the assessor's parcel number and parcel maps are used. Any errors in the assessor's rolls may affect the determination procedures. Decisions by jurisdictions relative to required studies, reports, etc. may be made using the same information sources used in the disclosures in this report, as well as information in their files and/or local ordinances and procedures. The disclosure information in this report is not a substitute for a geologic or engineering study, nor can it be construed that a city or county will not require such studies. No visual examination of the subject site was performed nor was a study of any jurisdiction's files or other sources made to determine the existence of any hazard which may exist on the site. This report is for the purpose of certain map-based real estate transaction disclosures only and is not a substitute for the broker/agent property inspection. Our determination for Mello-Roos Special Tax and 1915 Special Assessment Districts was made using a proprietary third-party database of Special Tax and Assessment Districts (STAD) that have issued bonds as the method to pay for facilities. Only STAD's which levied a tax against the subject property in the previous tax year are disclosed. STAD information may not be available if the property is in foreclosure for delinquent or non-payment of a Speciai Tax or Assessment. JCP cannot be held responsible for not reporting these cases. The databases are deemed to be accurate based on information supplied by bond issuers. Under no circumstances will JCP Property Disclosure be responsible for errors in the data supplied by bond issuers and suppliers of the tax databases. Information is up-dated on a yearly basis as soon as possible after updated information is released. No study of the assessor's or jurisdiction's files was made to determine the presence of any other tax or assessment which may exist for the property. Other types of "special assessments" likely exist that are not Mello-Roos or 1915 Bond Act Assessments. This JCP report is for disclosure only and is not intended to provide any type of tax advice. JCP suggests that if any party to this transaction has any concerns or questions regarding Mello-Roos Community Facilities Districts, or 1915 Special Assessment Districts they contact an appropriate expert. Military ordnance disclosures were provided using Department of Defense data sources that JCP neither produces nor maintains. JCP cannot accept liability for the accuracy of the information derived from these public data sources. No on-site inspection was performed. JCP performs services for the real estate agent/broker and current owner. This report is for residentiai property only and is for the exclusive use of the contractual parties, their broker/agent(s), and the current owner's sale for which it is issued. Due to changes in tax districts, disclosure maps. laws and contractual parties, this report cannot be relied upon for other properties nor for future transactions of the subject property. All parties should be aware that the information is subject to change. JCP is not responsible for advising parties of any changes that may occur after the date of this report. As a courtesy, JCP will update this report at no cost during the single transaction process for which this report was issued, if requested. JCP shall not be liable to anyone who may claim any right through his/her relationship with the agent, except when acts or omissions are due to willful misconduct or negligence by JCP. Reproduction of this report is permitted only for the purpose of fulfilling the seller's disclosure duty to the buyer in the transaction of the real property at the subject address noted herein. Any other reproduction, facsimile, or republication of this report is expressly prohibited and is a violation of the copyrights, trademarks anq service marks of the JCP Property Disclosure, and will be prosecuted to the fullest extent of the law. The Company shall assume no liability unless and until the fee for this (these) report(s) is paid in full. This JCP Report includes a statutory Natural Hazard Disclosure Statement as legislated in California Civil Code 1103. The delivery of this report is sufficient compliance for the legal exemption that states neither the seller nor any listing or selling agent will be liable for any error in this information as long as ordinary care is exercised in transmitting it and they have no personal knowledge of errors (California Civil Code 1103.4). This report is not an insurance policy and is not a substitute for the buyer obtaining Property & Casualty Insurance Policies which will provide coverage against losses incurred as a result of earthquakes, fires, flooding, environmental hazards, or any other kinds of risks associated with the property. If any party to this transaction has concerns relative to the stability or condition of the property or if "red flags" are observed during any party's inspection, an appropriate professional should be retained to study the site and render an opinion. Section 3 Page 9 @2007 JCP Property Disclosure Natural Hazard Disclosures 200 Commerce Irvine. CA 92602 Phone. (800) 748 5233 Fax: (800) 329 9527 ~~JCP V~roportv Disclosure Reports "', JCP Property Disclosure The EnviroCheck Report™ FOR Santa Clara COUNTY APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 I PART 2: SUMMARY OF DATABASE INFORMATION: SCHEDULES AAND B Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA SCHEDULE A: DETERMINATION SUMMARY: The sites disclosed on this report have been identified from certain government lists and are within one-half mile of the subject property. Please refer to the remaining Parts of this report for individual site summaries and additional information. Methods and limitations are at the end of the report. The subject property: IS D IS NOT 1~1 within 1/4 mile of 0 known leaking underground fuel tank site(s). IS D IS NOT [R] within 1/2 ~ile of site(s) other than a leaking underground fuel tank. Some official lists may include sites that have been closed or otherwise cleaned up, or are simply being monitored or regulated with no known contamination. The hazard 'sites' included in this report are 'POINT' SOURCES ONLY, such as a leaking underground tank on a specific property. This report does NOT address 'AREAS' of potential environmental hazard, such as a contamination Study Area or a groundwater plume. In addition, any point source that lies beyond the standard 1/4 and 1/2-mile radius distances considered here will not be reflected in this report--even if it is known to be the origin of a larger contaminated area. Point sources are included in this report as of the time they are identified in the government lists consulted by JCP Property Disclosure. JCP Property Disclosure prepared this report. Real estate brokers, agents and contractual parties ordering this report are covered by our Professional Liability Insurance Policy for damages to the extent they are caused by our negligent acts, errors or omissions in the performance of our services and subject to the limitations of this report. Determined by /7/'?j'7 ;k/P---- JCP Property Disclosure Scali Roecklein, Sr. Vice president First American Natural Hazard Disclosures I have read this JCP Property Disc.losure EnviroCheck Report prior to signing and have received a copy of this report. ~ ,. ~ . \ Signature of Transferor (Seller) ~t..<.J W ~- Date .- S . 2.2-.0:t Signature of Transferor (Seller) Date Signature of Transferee (Buyer) Date Signature of Transferee (Buyer) Date Page 2 of 15 <()2006 First American Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone. (800) 748 5233 Fax. (800) 329 9527 I!:~JCP V~ropertv O;s<:losure Reports ~", JCP Property DisClosure The EnviroCheck Report™ FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 Section 5 THE PARTIES: The owner of the Residential Property on the Report Date ("Seller"), the buyer of the Residential Property under contract of sale as of the Report Date ("Buyer") and their respective licensed real estate agents ("Agents") are the parties to the Transaction to which this Report applies ("Parties"). JCP and the Parties are the parties to the contract that is entered into by the purchase of this Report. I PART 1: INTRODUCTION AND SUMMARY I WHAT THIS REPORT DISCLOSES: This Report discloses information from six governmental Databases as to the existence of any underground storage tank or other specific types of potentially contaminated sites ("Sites") located within a specified distance of the Residential Property. This Report is divided into five parts: Part 1 . This INTRODUCTION and Summary Part 2. SCHEDULES A AND B: Determination Summary and B, Potentially Contaminated Sites within specified distances of the Residential Property Part 3. EXPLANATION OF THE DATABASES from which this Report has been prepared Part 4. Explanation of the METHODS used in creating this Report and Important Limitations of the Report Part 5. BACKGROUND INFORMATION regarding environmental contamination UNDERST ANDING THIS REPORT: To understand the information in the Report, including Schedules A and B, it is important to read this entire Report. THIS IS A DATABASE REPORT ONLY: This Report only provides information from the Databases identified in this Report. While JCP has made good faith efforts to report from the Databases as accurately as possible, the quality, accuracy, and currency of the information contained in these Databases can vary greatly. For more information regarding a specific Database,please read the Part below entitled "Databases Used in this Report." POINT SOURCE METHODOLOGY: This Report does not identify the precise areas actually contaminated by an environmental hazard; rather, as a reasonable approximation, it identifies as "point sources" for contamination those Sites identified in a specific Database. The point sources identified in this Report may not precisely reflect the location of the source of contamination on the Site, nor will they describe the spread of any contamination from the source. If a box is checked "IN" on Schedule A, JCP recommends further investigation of that Site. NOT AN INSPECTION REPORT: This Report is not the same thing as a physical inspection report or a full environmental assessment report. JCP has not physically inspected the Resident!al Property nor the Sites. This Report only summarizes the information from governmental Databases using the Point Source methodology described above to determine the proximity of Sites to the Residential Property. LIABILITY PROTECTIONS: Upon consummation of the sale of the Residential Property to Buyer ("Sale Date"), the Parties involved in that sale are protected against loss caused by any error in this Report as specified in the Part below entitled "Methods and Limitations." NClT AN INSURANCE POLICY: This Report is a binding contract but is not an insurance policy. The price charged for the Report does not cover the costs that would be necessary to provide all of the protections of an insurance policy. Page 1 of 15 ItJ2006 First Anlefican Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone (800) 748 5233 FaK (800) 329 8527 ~~JCP V~ropertv Disclosure Reports ~" JCP Property Disclosure The EnviroCheck Report™ FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 SCHEDULE B -INFORMATION REGARDING SITES IDENTIFIED IN SCHEDULE A SITES LISTED ON A LEAKING UNDERGROUND FUEL TANK LIST All of the sites in this section are listed on the State's Leaking Underground Fuel Tank Information System (LUFT) and have been identified to have had a leaking fuel tank. Many of these sites have been cleaned up, and this is noted below if it is the case. Leaking underground fuel tanks are the most common type of contamination. Fuel tank leaks are often less extensive than other types of contamination releases and usually do not extend beyond the property on which the tank is located. NOTE! The LUFT list identifies the type of resource (soil, groundwater, aquifer, etc.) that is or was affected by the contamination. For some listed sites, the resource description may appear to contradict information cited for "cleanup activity status". Please contact the State Water Resources Control Board for an explanation of any such discrepancy. Page 3 of 15 (02006 First American Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone. (800) 748 5233 Fax (800) 329 8527 ~~JCP v~roPerty Disclosure Repom ~", JCP Property Disclosure The EnviroCheck Report™ FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 SITES WITHIN % MILE OF THE SUBJECT PROPERTY OTHER THAN A LEAKING UNDERGROUND FUEL TANK The following sites are regulated by an agency or have been listed by a state or federal agency as being contaminated either currently or inthe past. Many of these sites have been cleaned-up; and this will be noted if it is the case. NOTE: sites listed on SWIS are not considered contaminated; they are simply monitored for compliance with regulatory procedures. No other types of hazardous substance contaminated sites were found within one-half mile of the property on the lists used to prepare this report. Page4of15 @2006 First American Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone: (800) 748 5233 Fax: (800) 329 9527 ~~JCP V~roPertv Disclosure Reports "f' JCP Property Disclosure The EnviroCheck Report™ FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 SITES MISSING KEY LOCATION INFORMATION NIP = Not Provided on list used. NIA = Not Applicable - Sites listed as containing, using or storing hazardous substances, no cleanup status provided. Active = Site undergoing clean-up or investigation. Closed = Clean-up completed. A limited number of listed sites contain address information that is inaccurate, incorrect, or is missing key information necessary to locate the site with confidence using the geocoding methods used in this report These sites are reported in the generalized list below for your review based on their possible existence in proximity to the subject site. Sites in this section are not necessarily within a one mile search radius of the subject property. We are providing this list for general information only. Site Name Address. . Status Database I Mobil 21855 Homestead Rd Closed LUSTIS Rayne Plumbing 12244 Saratoga-Sunnyvale Rd Closed LUSTIS Unocal Service Station #5926 999 De Anza BI Closed LUSTIS TIMEX CORPORATION 20650 Valley Green Dr Closed LUSTIS INTERSIL INC.lSIEMENS COMPONENTS 10900 N TANTAU AVE/19000 HOMESTEAD RD NPL SI. Joseph's College 7600 Saint Joseph Av Closed LUSTIS ARCO #5333 Stevens Creek/Stelling Rd Closed LUSTiS Unocal #5926 999 S De Anza BI Closed LUSTIS KAISER ALUMINUM AND CHEM CORP 23333 Stevens Creek BI Active LUSTIS KAISER CEMENT CORP PERMANENTE Unknown Stevens Creek Blvd W End Of Active LUSTIS Shell 21490 Mcclellan Rd Closed LUSTIS Exxon #7-3886 22020 Homestead Rd Closed LUSTIS Page 5 of 15 @2006 First American Naturai Hazard Disclosures 200 Commerce Irvine, CA 92602 Ptlone. (800) 7485233 Fax (800) 329 9527 ~~JCP Y~roperty Disclosure Reports ~", JCP Property Disclosure The EnviroCheck ReporFM FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , APN: 342-17-025 CUPERTINO, Santa Clara County, CA Date: 04/18/2007 Report Number: 80751 PART 3: EXPLANATION OF THE DATABASES USED IN THIS REPORT This Report uses the following Databases as of the specified date for each Database ("Database Date"): 1. NATIONAL PRIORITIES SITES (NPL sites - commonly called "Superfund" or "CERCLlS" Sites) AS OF OCTOBER 1,2005. The National Priorities List ("NPL") is a federal Environmental Protection Agency ("USEPA") database which includes sites where known releases or threatened releases of hazardous substances, pollutants, or contaminants have occurred. As a part of the Superfund cleanup program, the NPL helps the USEPA determine which sites warrant further investigation to assess human health and environmental risks, identify what remedial actions may be appropriate, notify the public of sites believed to warrant further investigation, and serve notice to potentially responsible parties that the USEPA may initiate remedial action. Some NPL sites encompass relatively large areas. Responsible Agency: USEPA FOR MORE INFORMATION: Contact the Environmental Protection Agency Superfund Hotline at (800) 424-9346 to speak with a Superfund consultant to request information from the individual Site Fact Sheet. This help-line can also provide the telephone number of the local Community Relations Coordinator for the Site in question and the location of the local information repository for that Site. The USEPA's offici~llnternet website address is www.epa.qov/superfund/sites/npl/ca.htm. 2. Leaking Underground Fuel Tank Sites (LUFT) PER GEIMS/GEOTRACKER INFORMATION MANAGEMENT SYSTEM AS OF OCTOBER 1, 2005. Leaking underground storage tanks ("LUSTs") may be a significant source of soil and groundwater contamination. The State Water Reso.urces Control Board maintains a database of LUSTs known as the Leaking Underground Storage Tank Information System which was recently supplanted by the statewide GEIMS/GeoTracker information management system. LUSTIS contains the locations of all reported LUSTs, as well as the contents and status of the LUSTs. Responsible Agency: SWRCB FOR MORE INFORMATION: For general questions, telephone the State Water Resources Control Board's Clean Water Desk in Sacramento at (866) 480-1028. Information on specific sites is available at www.swrcb.ca.gov or visit their official Internet site at www.qeotracker.waterboards.ca.Qov 3. California Integrated Waste Management Board's SWIS List AS OF OCTOBER 1, 2005. Solid Waste Landfill Sites vary from state to state and may include active landfills, inactive landfills, incinerators, transfer stations, recycling facilities, and other facilities where solid waste is treated or stored. The California Integrated Waste Management Board ("CIWMB") tracks such sites via its SWIS database. SWIS contains information on facility type, regulatory and operational status, type of wastes received, and local enforcement actions. Please note that these sites are simply regulated facilities and are not classified as being "contaminated" by the Board. Responsible Agency: CIWMB FOR MORE INFORMATION: Contact the Board's "Solid Waste Information Center" at (916) 341 6320 and ask for the Associate Waste Management Specialist who should be able to answer some limited general questions. For more infor.mation, please contact the CIWMB in Sacramento or visit www.ciwmb.CA.Gov/Swis/search.asP#DOWNLOAD on the Internet. 4. Spills, Leaks, Investigation and Cleanup list (SLlC) AS OF OCTOBER 1, 2005. The SLlC Program oversees soil and water investigations, corrective actions, and assessments at sites with current or historic unauthorized discharges and covers all types of pollutants (such as solvents, petroleum fuels, heavy metals, pesticides, etc.) As of January 1,2005, all SLlC data is required to be submitted to the State Water Resources Control Board's Geotracker database. Information on individual sites may be available online at www.qeotracker.waterboards.ca.qov . Please note that according to the SWRCB, "data is undergoing data cleanup and may contain errors". FOR MORE INFORMATION: For details about a particular site, please visit GeoTracker at www.qeotracker.waterboards.ca.qov Using the Identifier tool and clicking on the site on the graphic map interface, you can access a report that includes the case number and contact telephone number for the agency with more information on this site. If you know case number, you may access the record using Case Finder at http://www.Qeotracker.waterboards.ca.qov/search/casesearch.htm Page 6 of 15 '02006 First American Natural Hazard Disclosures 200 Commerce Irvine. CA 92602 Phone. (800) 748 5233 Fax (800) 329 9527 ~4}JCP V~roperty Disclosure Reports ~", JCP Property Disclosure The EnviroCheck ReporFM FOR Santa Clara COUNTY APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 5. CALIFORNIA ACTIVE ANNUAL WORKPLAN LIST (A WP) AS OF OCTOBER 1 , 2005. Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA Responsible Agency: State EPA FOR MORE INFORMATION: Contact the State Environmental Protection Agency Department of Toxic Substances Control at: (916) 323-3400 WANT MORE INFORMATION? There is no single government agency that handles information for all contaminated sites. Multiple agencies are responsible for organizing clean-up efforts at different types of sites. Each generally maintains files on the sites they oversee with information on the type and extent of contamination, clean-up efforts etc. There is also the possibility that the file may have no additional information. For general information, refer to the discussions in this report. If your question isn't answered there, call us here at JCP. We will try and answer them for you. In each site summary, there is the name and telephone number of the agency overseeing that site. Agencies are limited to answering general questions. NOTE! Additional information on a site may be limited and the government agency you contact will not venture opinions. . How to Obtain Generalized Environmental Information Brochures published by the Environmental Protection Agency (EPA) are a good source of general information. County health departments may have a health and safety officer or a "haz-mat" (hazardous materials) specialist that can answer general questions also. The telephone number for your local Department of Health should be listed in the telephone book. Environmental Protection Agency Drinking Water Hotline: (800) 426-4791 Federal Environmental Protection Agency Public Information Office: (866) 372-9378 California Environmental Protection Agency: (916) 445-3846 Page 7 of 15 @2006 First American Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone (800) 748 5233 Fax: (800) 329 9527 ~~JCP y~roperty Disclosure Reports ~" JCP Prope~y Disclosure The EnviroCheck ~eporFM FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 PART 4: METHODS AND LIMITATIONS -- PLEASE READ! I As in all studies and reports, there are limitations in this Report. This Part will summarize (a) the methods used in creating this Report, (b) the limitations with respect to the data and the government site lists ("Databases"), and (c) the responsibilities and liabilities of JCP under this Report. Please read this Part carefully so you understand the limitations on this Report and JCP's responsibilities. A. LIMITATIONS ON DATABASE INFORMATION JCP has accurately reported the information in the Databases as of the Database Dates. With respect to the Databases, it is important to understand that o The Databases may not be accurate, current, fully detailed, or complete. o A parcel of real property may be affected by contamination or environmental hazards that have not been identified on any of the Databases. o A Database may not contain sufficient information to locate a particular parcel of property. o Changes may have occurred in the Databases since the Database Date specified above. o . There may be other governmental databases with relevant information which are not included in this Report. B. JCP DOES NOT CONSTANTLY CHECK DATABASES FOR CHANGES Each Database used in this Report is updated by the Responsible Agency at various intervals. Updates for a Database are determined by the Responsible Agency and may be made at any time and without notice. JCP maintains an update schedule and makes reasonable efforts to use updated information but it cannot feasibly do so on a constant basis, and the complexities of obtaining and adapting the data into a usable format for preparing this Report necessitates some delay once the updated information is obtained. For these reasons, JCP reports information as of the date when the Database was last updated by JCP. That date is specified as the "Database Date" for each Database in Part 4. C. LIMITATIONS ON How SITES ARE LOCATED AND REPORTED Due to the way information is reported in the Databases, the Sites identified are "POINT SOURCES" ONLY which means that the specific location of the Site is located based on the information in the Database and used as the beginning point for measuring the distance to the Residential Property. This Report does NOT use "AREAS" of potential environmental contamination, such as a contamination study area or a groundwater plume, even if the source of that study area or plume derives from a Site. In other words, this Report identifies a single point as the approximate source point for an environmental hazard identified on a Database, even if the hazard actually covers an expanded area. In the Databases, the Sites are identified by their address. In this Report, the point location for a Site is based on that address, not on the actual location of a source of contamination on the Property. As a result, the location of any Site set forth in this Report may not be precisely the location of the source of contamination. Furthermore, some of the Databases may not have the complete address information for a Site so it can not be located at all. The Residential Property has been located by approximating its street address as a point. While JCP has attempted to locate that point as accurately as possible, there may be some inaccuracy due to the shape of the property or the mapping information upon which we have relied. Furthermore, since the Sites are located using a geographic information system, if the address of the Residential Property provided to JCP is inaccurate, the information provided in this Report will not be accurate. In cert.ain instances, Sites cannot be precisely located (or "geocoded") due to missing or inaccurate data in the Database. However, based on information available in the Databases, these Sites are locatable within zip codes. These sites are referred to as "Unlocated Sites" and reported in the Part, "Sites Missing Key Location Information." That Part reports such Unlocated Sites that are in the zip codes that are within a one (1) mile radius Of the Residential Property. Unlocated Sites are not necessarily within one mile of the Residential Property. They are identified to alert you to potential issues on which you may desire to ~btain further information. Page 8 of 15 102006 First American Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone (800) 748 5233 Fax: (800) 329 9527 #::~JCP V~roperty Disclosure Reports 't', JCP Property Disclosure The EnviroCheck ReporFM FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 For these reasons, parties should seek additional information about the Sites listed, as described in the discussion of the relevant Database. D. LIMITATIONS IN THIS REPORT JCP does not make any representations as to: . The accuracy, validity or completeness of the Databases. . The significance or extent of the contamination or remediation of any of the Sites identified in the Databases. . The health hazards to humans or animals that may be associated with any of the substances that may exist at the Sites or how they may affect the Residential Property. . The drinking water sources for the Residential Property. . Any information in a Database after the Database Date for that Database. . Any information regarding the Residential Property after the Report Date. JCP does not perform a physical examination or any testing of the Residential Property or the Sites. This Report only provides information derived from the Databases in accordance with the Methods and Limitations. This Report should not be considered a substitute for an on-site environmental assessment. If additional information is desired, the Parties are encouraged to investigate other sources and to consult an environmental expert. E. ONLY THE PARTIES MAY RELY ON THIS REPORT This Report is valid, the Parties may rely on the Report, and a contract is formed with JCP, only upon receipt by JCP of payment of the full price of the Report. This Report may be relied upon only by the Parties to the transaction for which it has been purchased. This Report cannot be relied upon (a) by any persons other than the Seller, the Buyer and their Agents, (b) for any other real property, or (c) for any future transactions involving the Residential Property. The price paid for the Report does not include any amounts for protection of such other parties. F. LIMITATIONS ON FIRST AMERICAN'S LIABILITY Given the limited nature of this Report, and the fact that JCP is reporting, not assuming liability, JCP is not responsible for: o Any inaccuracies or incompleteness of the information in the Databases. o Inaccurate address information provided for the Residential Property. o Any other information not contained in the specified Databases. o Any information which would be disclosed by a physical inspection of the Residential Property: o Any information known by one of the Parties. o Any changes to the information in the Databases after the Database Date. o The health hazards to humans or animals that may be associated with any of the substances that may exist at the Sites or how they may affect the Residential Property. o The costs of investigating or cleaning up any environmental hazards. This Report is not an insurance policy and does not provide the same protections as an insurance policy. It does not obligate First American to defend any Party against any claims, and JCP shall not have any duty to defend against any claims pursuant to California Civil Code S 2778 or otherwise. The price of this Report has not been based upon any responsibility for defense costs, nor for assumption of environmental risks. The premium for an insurance policy would be significantly greater than the cost of this Report. The Parties acknowledge that claims for damages beyond actual losses can significantly increase the costs of reports and make prompt resolution of claims more difficult. In order to induce JCP to provide this Report for the price charged, and to help streamline the process of resolving any disputes between the Parties and JCP, the Buyer, Seller and Agents agree that if there is a material error or omission in this Report: . The Party who suffers damages as a result of such error or omission shall be entitled at most to recover from JCP the actual proved damages measured by the difference in the fair market value of the Page 9 of 15 \02006 First American Natural Hazard Disclosures 200 Commerce Irvine CA 92602 Phone: (800) 748 5233 Fax: (800) 329 9527 ~4J)JCP V~roperty Disclosure Reports ..." JCP Property Disclosure The EnviroCheck ReporFM FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA Residential Property as of the Report Date, $100,000 Dollars ($100,000). APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 caused by the error or omission but not in excess of . JCP shall not be liable for indirect, consequential, or punitive damages (including, but not limited to, emotional distress or pain and suffering). JCP shall not be liable to a Party for any matters known to that Party or its Agent (including errors in this Report) and not disclosed in writing to both the other Parties and JCP prior to the Sale Date. G. SELLER AND SELLER'S AGENT'S RESPONSIBILITY OF FULL DISCLOSURE Sellers of real property and their Agents should always fully disclose all material facts regarding the real property which they are selling. Regardless of the information in this Report, if Seller or Seller's Agent has any actual knowledge of contamination, releases of hazardous materials or remediation activities potentially affecting the Residential Property, that information should be promptly disclosed in writing to the Buyer and the Buyer's Agent. H. OTHER AGREEMENTS This Report sets forth the complete, integrated agreement between JCP and the Parties. Evidence of prior or contemporaneous statements, representations, promises or agreements shall not be admissible to vary the terms of this written agreement. This agreement may not be changed or amended except by a written document signed by an authorized representative of JCP and the Parties. . In the event that any dispute arises between JCP and any Parties arising out of or relating to this Report or its subject matter, or any act or omission of JCP, the prevailing party shall be entitled to recover his, her or its reasonable costs, including attorneys' fees, from the losing party. If any provision of this Report, or its application to any circumstance, is held to be invalid, unenforceable, or void, the remainder of this Report shall remain in full force and effect and enforced to the fullest extent possible. I PART 5: BACKGROUND INFORMATION I The subject of hazardous waste can be an emotional and uncertain topic. You have taken an important step by obtaining this report to help become informed on environmental issues. There are a number of important factors to consider when assessing environmental issues. Risk is only one factor. Others include public values and perceptions, economic constraints, perceived risk to health etc. Accurate and unbiased information is important. It provides a logical foundation for decisions that are often emotionally based on "perceived" rather than on actual ris.k. This section includes discussions on certain topics to help you understand this report. The subject of contamination is broad and complex. These discussions are not intended to be an exhaustive study of environmental issues. In addition, many aspects of hazardous substance clean up and control change as state-of-the-art practice and legislation changes. For these reasons, the following information is of necessity generalized and may not apply to every site. This section is divided into the following: [ What Are Hazardous Substances? Understanding the Risk in Perspective = Groundwater = Formation of Plumes: The Transport of Chemicals into Groundwater = .Leaking Underground Fuel Tanks [ What is a "Superfund" Site? c- Drinking Water: Tap vs. Private Well Page 10 of 15 !02006 First Amencan Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone (800) 748 5233 Fax (800) 329 9527 .a~JCP V~roperty Disclosure Reports ~" JCP Property Disclosure The EnviroCheck ReporFM FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 WHAT ARE HAZARDOUS SUBSTANCES? Chemicals in our environment are a controversial subject. This is because their effects on human health are often not well understood. Both the govemment and the public want clear standards that define when a substance is considered "hazardous." Unfortunately, it is not always easy to determine such a clear standard. Precise instruments allow us to detect a wide variety of substances even in very small concentrations. Sometimes these substances are only detectable in the parts per billion (ppb) or parts per trillion (ppt) ranges. In these cases, the concentrations are at or near the limit of our ability to even detect them. If scientific study shows that a particular chemical is known or suspected to adversely affect our health, that substance could become listed as an official hazardous substance. The list of what "is" and "is not" a hazardous substance changes. With increased research, substances are added and, in some cases, removed. The potential health implications make us question the presence of chemicals in our environment. It's important to understand that any risk associated with a substance is dependent on both the concentration of the chemical and the length of exposure time. Some scientists believe that a "threshold" level exists for many chemical concentrations below which there are no known or anticipated adverse health effects. This allows standard concentration limits of some chemicals to be established. These standards are called "Maximum Contaminant Levels" (MCL), and they are enforceable by the Environmental Protection Agency. If these levels are exceeded, the substance must be cleaned-up until it is at or below the MCL. The term "hazardous substance" is used in this report as synonymous with "hazardous waste" and "toxic substance: In general, the terms refer to a material with potentially harmful affects. Once a particular substance is determined to be harmful, it may become regulated by one or more environmental laws. When this happens, it is termed "listed." Once a chemical is "listed," sites that have spilled or leaked the substance may be required to clean it up. Hazardous Substances in Perspective As is true with any hazardous substance, the mere presence of it is not a threat to human health. In order to pose a health risk, that substance must come into physical contact with the body by eating, drinking, inhalation, or skin contact. It is the likelihood of physical exposure to a substance that must be carefully examined to determine an acceptable level of risk. Information on how contaminated sites can or cannot affect the property is vital in making decisions. Inaccurate perceptions could lead to making misinformed decisions. Two lines of logic to consider when analyzing risk are: . We make daily decisions based on familiar and acceptable levels of risk because we feel the benefits outweigh the potential consequences. For instance, although we know driving freeways might be dangerous, we drive them anyway because convenience and speed makes this risk acceptable. Many risks we undertake everyday aren't considered hazardous simply because they are familiar. . Everyday, we make decisions based on what is most important to accomplish first, second, etc. This is necessary because if all problems were assigned equal importance, nothing could b"e accomplished. Risk is commonly considered similarly or, in other words, as "relative risk." This consideration is based on deciding what "risk" has the worst or immediate adverse consequence and then address that risk first. Often, decisions are not based on scientific analysis and hard data, but on perceived risk and public opinion. In the environmental arena, these two approaches go head to head. Public attention may be focused on certain environmental hazards based on a dramatic and well-publicized environmental problem. Unfortunately, this may lead to a diminished concern for other environmental issues that may pose more immediate concern. This line of thinking is not directed at undermining the significance of large-scale contamination, but is meant to direct attention to the "big picture." Page 11 of 15 r02006 First American Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone: (800) 748 5233 Fax. (800) 329 9527 ..()JCP V~roperty Disclosure Reports .." JCP Property Disclosure The EnviroCheck Report™ FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 Many studies indicate that things we do on a daily basis in our homes may expose us to a greater overall health risk than living next door to virtually any contaminated site. It's hard to imagine that many of the items we take for granted in our homes have higher concentrations of hazardous substances and expose us for greater amounts of time than just about anything we encounter in normal outdoor activities. This is where familiarity with items such as "dry-cleaned" clothes, many air fresheners, mothballs, paints or shoe polishes make the hazardous substances in such things acceptable. In certain cases, chemicals that are strictly regulated in industry are not regulated in homes. An example is methylene chloride, which the EPA found in about one-third of 1000 common household products in a 1987 study. Methylene chloride is regulated in factory emissions, but not within homes. Understanding a variety of issues is important for making informed decisions. Evaluating risks accurately in order to avoid over- or under-reacting is a task best completed based on sound, accurate information. GROUNDWATER The water in lakes, rivers, and groundwater all together only account for about 0.6% of the total water on Earth. Of these, groundwater is the most important fresh water supply. About half of the United States depends on groundwater for their drinking water. An expanding population and economy has prompted a dramatic increase in the demand for water from groundwater supplies. Many thought such water was immune from contamination. However, as more incidents of groundwater pollution occur, public interest in protecting our groundwater has increased as well as legislative protection of this resource. Although the technical aspects of groundwater and groundwater pollution are beyond the scope of this report. the basic concepts are easy to understand and can help in evaluating other information in this report. How Groundwater Reservoirs Form In order to understand the basic principles of groundwater, it is necessary to appreciate the "hydrologic cycle." This is the system by which nature circulates water. In short, water evaporates from the ocean and rises to form clouds. Water in the air condenses and eventually falls back to the earth in the form of rain, snow, sleet, hail etc. which then eventually flows back to the ocean. We depend on precipitation that falls on land to replenish our fresh water supply. Precipitation can fall directly into water bodies, from run-off, or soak into the soil. Much is absorbed by plants or evaporates, but a portion seeps down into the groundwater. Technically, "groundwater" is water located in water-saturated zones below the surface. Water located in unsaturated zones is simply called "soil water." Groundwater is primarily stored in "aquifers." Usually, aquifers consist of gravel, sand, clay or fractured rock. Groundwater is stored in the pores and cavities of sediments or in rock fractures. It does not occur as an underground "ocean" or "river" except perhaps in a rare cave-type environment. Aquifers may consist of one continuous "layer" or as several layers stacked-up like pancakes. . How Groundwater Moves Groundwater is added to (recharged) by water seeping down through the ground and is released (discharged) when it intersects a surface body of water such as a lake or stream or when it is pumped out. The surface area below the ground where the soil or rock is water saturated is called the "water table." The water table is not fixed. It can move up and down as water is removed froIT) or added to the aquifer. In general, groundwater moves slowly. This is an important concept when considering groundwater contamination. The water can move as slowly as a few inches per year in clays. However, if the aquifer consists of loose sand and gravel, the groundwater can move hundreds of feet per year. Like water at the surface, groundwater moves with the gradient (Le. downhill). However, groundwater can also move as a result of being under pressure. Pressurized water will move from high to low pressure areas. This works under the same principle as any material under pressure, such as fluid in an aerosol can. Page 12 of 15 (02006 First Amencan Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone. (80017485233 Fax (800) 329 9527 ~~JCP V~roperty Disclosure Reports ~", JCP Property Disclosure The EnviroCheck ReporFM FOR Santa Clara COUNTY Property Address: NIA SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 FORMATION OF PLUMES The Transport of Chemicals into Groundwater Chemicals that are spilled or released into soil may dissolve in any water that is present. In some cases, the chemicals may be transported into groundwater by water slowly seeping downward. How fast this occurs and the details are complex, but water generally moves downward. Lateral movement is generally not significant until water reaches the water table. The contaminant concentration reaching groundwater is less than the concentration at the source because of dilution and breakdown that occur along the way. As contaminants are slowly transported downward, they can chemically interact with other things in the water or soil. This can temporarily or permanently remove the contamination. Natural defense mechanisms such as biological degradation also act to naturally mitigate contamination to varying extents by removing or altering the contaminants. For instance, some bacteria that live naturally in soil and groundwater can metabolize many of the contaminants in gasoline. Contaminants become "pollution" if they reach concentrations high enough to be judged harmful to humans or the environment. Groundwater standards are set by the United States Environmental Protection Agency (EPA) and state agencies. Contamination can originate from a "point source" such as a leaking underground tank, or from a "non-point" source such as infiltration from agriculture (i.e. pesticides and fertilizers) or urban run-off (i.e. road salt or trace metals left on roads from tires and car emissions). When contaminants enter the groundwater, they are slowly dispersed to form a diluted cloud or "plume." Chemical reactions and biological breakdown can continue. Pumping, complex flow pattems, chemical and biological processes all affect the travel,. size and shape of plumes. Some contaminants may be removed by a process called "adsorption." Adsorption is the process by which a chemical adheres to grains in the soil. Although this does not remove the contaminant, it may immobilize it and help prevent it from spreading. ~ ~LL,o~~ ~ ~ AGRICUL TUR. . Ground . ... Surface ~. j .;~;:~:~~? 1>/1 NON-POINT~OURCE t,...... ...~...: ....'.U---J..~...:. ..~.".,.;.. ..... .;.. '.:-.;.~' :...'~' POINT SOURCE. RECHARGE/.~..:. ..~. ..' ,.....'. .'>"~: :;'.> n ~;f~: ~ti. ~;,~rJ:' l.;~'.! :~~: wo."..,. ~ ..... .. .. Groundwater Flow Direction Figure 1. How a contaminant plume forms. A plume forms in the direction of groundwater flow. The size and extent of plumes are determined using "monitoring wells." Such wells also help track clean-up efforts. Information from monitoring wells and other sources are used to determine appropriate mitigation recommendations. Clean- up methods can vary widely depending on local site conditions. Page 13 of 15 rG2006 First American Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone. (800) 748 5233 Fax (800) 329 9527 ~(}JCP Y~roperty Disclosure Reports ~" JCP Proper1Y Disclosure The EnviroCheck Report™ FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 LEAKING UNDERGROUND FUEL TANKS The most common type of contamination comes from leaking underground fuel tanks and piping systems. Underground tanks are common throughout California as well as throughout the United States. These tanks are predominantly used for storing fuel, although solvents used in high technology industries and other substances are stored in this manner also. . Why underground tanks? Many years ago, jurisdictions developed regulations with regards to fuel tanks for the "esthetic" protection of growing cities as well as providing important fire safety measures. For these reasons, the majority of fuel tanks must be buried. Unfortunately, the state building codes that regulate underground fuel tank construction did not keep up with changing technology. The result was that industry used traditional methods in building underground tanks and pipes. Today, there are laws in place that ensure strict building codes are followed in new tank construction, as well as upgrades for all substandard underground tanks. When an underground tank leaks, the soil and/or groundwater can become contaminated. How much fuel actually gets into the soil depends on how big the leak is and how long the leak continues. Experience shows that leaking fuel "seeps" into the ground at a generally slow rate anq usually does not travel very far. "Seeping" fuel into the soil can be likened to wetting the corner of a sponge. With only a small amount of water, only the corner gets wet and the rest of the sponge remains dry. If a leaking underground fuel tank is discovered, the tank owner or responsible party must notify the appropriate Regional Water Quality Control Board (RWQCB) or county-level agency and submit an "unauthorized release form". The responsible party must also make every effort to stop the leak and empty the tank if necessary. The RWQCB or county-level agency will then undertake the lead in clean-up efforts, with the tank owner or responsible party reporting directly to them. Until investigation and cleanup are complete, the tank owner or responsible party must submit reports detailing cleanup efforts to the lead agency at least every three months. If the investigation fails to confirm that a leak has actually occurred, no further corrective action will be required. For those sites that do require corrective action, the cleanup process could take a few months to many years, depending on the severity of the leak. Additional information may be available through the Public Safety Officer or Hazardous Materials Specialist in your city. They are generally located in the Fire Department or Public Works Department. WHAT IS A "SUPERFUND" SITE? "Superfund" is a common term for a piece of legislation called the "Comprehensive Environmental Response, Compensation, and Liability Act", which was enacted by Congress on December 11,1980, and is enforced by the United States Environmental Protection Agency (EPA). This legislation provides funding for clean up at the worst hazardous waste sites in the United States. Because the moneys involved in clean up are large, this federal statute was dubbed "Superfund." The purpose of Superfund is to clean up or mitigate hazardous materials that pose an immediate and substantial danger to the public or the environment. This could be a chemical "spill" thElt requires immediate response or a site that requires long- term clean-up action. The chemicals found at Superfund sites can vary but some have included familiar contaminants such as arsenic, lead and mercury. Other lesser known contaminants include toluene, pentachlorophenol and vinyl chloride. This Act also holds polluters liable for clean-up expenses as well as forces responsible parties to take clean-up actions. How does a site get on the Superfund list? Proposed sites are brought to the EPA's attention in several ways. It could come from notification by the owner, complaints by citizens, identification by a state or local jurisdiction, or by special EPA investigations. A site is then placed on the Superfund, or "National Priorities List" (NPL) once the EPA determines that it represents a long-term threat to public health or the environment. The EPA makes this determination by evaluating such things as the likelihood that a site has released or has the potential to release hazardous substances into the environment, the characteristics of the waste (e.g. toxicity and waste quantity), and the number of people affected by the release. The government believes that "Superfund" funding is warranted if the site poses a significant and immediate health concern. Even if federal funding is not provided, the site may require action under other statutes. Page 14 of 15 ,02006 First American Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone. (800) 748 5233 Fax: (800) 329 9527 ~~JCP V~roperty Disclosure Reports ~" JCP Property Disclosure The EnviroCheck Report™ FOR Santa Clara COUNTY Property Address: N/A SAN JUAN Rd , CUPERTINO, Santa Clara County, CA APN: 342-17-025 Date: 04/18/2007 Report Number: 80751 DRINKING WATER: TAP VS. PRIVATE WELL Being in proximity to a contaminated site occasionally raises concern regarding the quality of the drinking water and whether or not the contamination is present in that water. One important question to keep in mind is "where does the drinking water come from... a municipal water system or a private well?" The answer to this question will help to resolve the issue of contamination. In general, homes in urban areas are typically hooked up to a municipal water system. The water from this type of system is commonly referred to as "tap water". Municipal water suppliers are required to meet stringent drinking water standards set forth by the US EPA. These drinking water suppliers provide reports, sometimes called consumer confidence reports, which outline where the water comes from and what substances are in it. The municipal water supplier should be able to provide these reports upon request. On the other hand, if a home is not hooked up to a municipal water source but instead is using a private well on the property, then the US EPA regulations do not apply. The homeowner is responsible for the quality and safety of the drinking water. Keep in mind that being in proximity to a contaminated site does not necessarily mean the well will be contaminated. There is always the possibility that the contamination could be traveling in the opposite direction to where the private well is located, in which case the well water would remain uncontaminated. Another possibility is that the contamination could be at a much shallower depth than where the private well is drawing water. If the private well is deep, then it possibly can bypass contamination at more shallow depths. In any case, the US EPA recommends that well owners have their water tested annually. For additional general information on environmental topics, contact the Public Affairs office of the California Environmental Protection Agency. This should be listed in the State government section of your local telephone book. Another good source of information may be found by contacting the environmental or hazardous materials specialist in your City or County Department of Health. Page 15 of 15 @2006 First American Natural Hazard Disclosures 200 Commerce Irvine, CA 92602 Phone (800) 748 5233 Fax: (800) 329 9527 200 Commerce Irvine, CA 92602 Phone: 800-748-5233 Fax: 800-329-9527 STATUTORY PROPERTY TAX REPORT Special Assessment and Special Tax Disclosure Parcel Number: 342-17 -025 r-'I <::::::-.L Property Address: \j.Y'- ~~ San Juan Rd , Cupert;no, Ca 9501. 1.,,1,' County: ~ ' Santa Clara Report Date: 4/18/2007 The information contained in this report is intended for the exclusive benefit and use of the recipient(s). No person other than the recipient(s) should rely upon, refer to, or use this report, or any information contained within this report, for any purpose. The recipient(s) should carefully read the explanation of services,and the conditions and stipulations contained in this report. No recipient may rely on this report unless full payment for it is made. This report satisfies the Seller's obligation to disclose Mello-Roos taxes and 1915 Act assessments affecting this property pursuant to Civil Code Section 1102.6b, and is compliant with all provisions of Senate Bil/1122 and Assembly Bil/337. CONTENTS The following report contents meet or exceed the legal disclosure standards defined in California Civil Code Section 1102.6b: . Buyer's Acknowledgement Summary (Signature Required) . Special Assessment Summary . Seller's Secured Tax Bill Summary . Statutory Notice of Special Tax/Assessment . Other Special Assessments . Accelerated Foreclosure Summary . Available Senior Exemptions . Notice of Supplemental Property Tax Bill . Property Tax Estimator and Supplemental Tax Bill Estimator . General Information about Your Property Tax Bill Buyer's Acknowledgement Summary The information contained in this report is subject to the terms and conditions contained herin. I (we) acknowledge that I (we) have received and read a copy of this notice. If this property is listed as subject to a Mello-Roos community facilities district special tax or a 1915 Bond Act assessment, I (we) understand that I (we) may terminate the contract to purchase or deposit receipt after receiving this notice from the owner or agent selling the property. If this property is listed as subject to a Mello-Roos community facilties district special tax or a 1915 Bond Act assessment, the contract may be terminated within three days if the notice was received in person or within five days after it was deposited in the mail by giving written notice of termination to the owner or agent selling the property. Buyer Signature Date: Date: Buyer Signature: Order Number: 80751 Page 1 of 9 Report Date: 4/18/2007 Copyright 2001-2006 Alliant Tax Research, Inc Special Assessment Summary This is a notification to you prior to your purchasing this property. Parcel Number: Property Address: County: Report Date: 342-17-025 Nla San Juan Rd , Cupertino, Ca 95014 Santa Clara 4/18/2007 The above referenced property is affected by general property taxes (called ad valorem taxes), which are based on the net assessed value of your property. The ad valorem tax is charged to every taxable property in the state and is set at 1% of the net value of property each year. This basic tax rate may be increased slightly over 1 % by voter approved bond issues for your school district, city or other regional project. In addition, the above referenced property lies within the following special tax and/or special assessment districts. These assessments and taxes will be taxed in addition to ad valorem taxes each year: STATUS DESCRIPTION OF TAX CATEGORY - YES One or more Mello-Roos Community Facilities Districts NO One or more 1915 Bond Act Assessment Districts YES Other special financing districts YES Other direct assessments The following disclosure is made by the Transferor pursuant to Government Code 953341.5 and Civil Code 91102.6b. The representations. made in this disclosure report are based on information provided by an independent third party report provided as a substituted disclosure pursuant to California Civil Code 91103.4. Neither the Transferor nor the Transferor's agent(s) has 1) independently verified the information contained in this report, or 2) is personally aware of any errors or inaccuracies in the information contained in this form. Report Terms and Conditions This report for the property named herein is a product of Alliant Tax Research, Inc. (hereafter, "Allianf') and is distributed by First American NHD. The terms and conditions listed below represent the terms and conditions under which this product is sold: The purpose of this report is to provide a determination of whether the current secured property tax bill for this parcel contains a Mello-Roos special tax or a 1915 Act Bond Assessment District charge, and to assist the Seller in fulfilling his or her duty to comply with California Civil Code S11 02.6b. This report is not a substitute for a title report or title insurance and may not be relied upon as such. Items not yet levied on the tax bill. items not appearing on the current tax bill. and items removed from the current tax bill for any reason may not be reflected on this report. Estimates of future charges, if provided, are only estimates and may not be inclusive. This report is for the exclusive benefit of the specific Buyer and specific Seller for which this report was prepared and there shall be no third party beneficiaries. This report may not be used in any subsequent transaction affecting the subject property. This report is applicable to residential property only with four dwelling units or less. This report may not be relied upon for commercial or industrial property or for multi-family properties of more than 4 dwelling units. While this report contains data gathered from what Alliant believes to be reliable sources, the amount of the levy and end year may be subject to change in the future. The Maximum Tax amount provided is an estimate, calculated based on available County assessor data or third party data. Calculations may vary from those calculated by the issuer, due to several factors including differences in interpretation of the Special Tax Formula, availability of data, and change or correction of classification from year to year. Items not included on the current year tax bill but shown on this report represent an estimate and are not intended to be comprehensive. Other taxes and assessments may exist that are not yet leIDed on the tax bill or not levied during the tax year on the report. This report was compiled using information obtained from the County on a given date and may not reflect changes made later by the County or the local government agencies levying charges against this property. This information is subject to change and Alliant does not have a duty to update the report for any tax bill, legislative or related changes that may occur in the future. This report was prepared based upon records provided by various governmental agencies and third parties. Alliant has assumed that these agency records are accurate and complete, but Alliant has not conducted any independent verification of their accuracy or completeness. Alliant shall not be responsible for any inaccuracies or omissions in the public records of the various governmental agencies or for information provided by third parties. Order Number: 80751 Page 2 of 9 Report Date: 4/18/2007 Copyright 2001-2006 Alliant Tax Research, Inc Seller's Secured Tax Bjll Summary Report Date: 342-17-025 N/a San Juan Rd , Cupertino, Ca 95014 Santa Clara Assessor's Phone #: (4G8) 299-5500; Tax Collector's Phone #: (408) 808-7900 4/18/2007 Parcel Number: Property Address: County: The following listing is a summary of the current year secured property tax bill. It is provided for informational purposes only. Ad valorem taxes are calculated annually based on the assessed value of the land and improvements. When a property is sold, the assessed values will be reset to the sale price. Ad valorem taxes can therefore change dramatically if the sales price differs from the current assessed value of the property. Please Note: All information on this page is based on 2006/07 data only. Ad valorem taxes are historical and are subject to change when a home sells. No warranties are made regarding this information. The information on this page is not provided as a disclosure by seller or his/her agents. Ad Valorem Taxes (Note: Historical only, based on the seller's tax bill) The following include both the basic levy authorized by Proposition 13, plus any additional voter approved general obligation debt. The amount you pay will be based on the purchase price of your home less any exemptions, times the estimated tax rate. Agency . . Contact Phone 2006/07 Levy County of Santa Clara Ad Valorem Tax *Amount will be based on the assessed value of the subject property. * Total ad valorem levy (basic 1% on net value plus applicable voter approved overrides) (916) 874-7431 $ 0.00 Total Ad Valorem Taxes: $ 0.00 Special Assessments The following include all special assessments and special taxes included on the tax bill. Agency Direct Assessment Description I Contact Phone 2006/07 Levy County of Santa Clara Vector Control Fee *Estimate, no 06/07 tax bill.- listed as gov't owned* Mosquito, Vector and Disease Control Assessment *Estimate, no 06/07 tax bill - listed as gov't owned* Storm Drain Fee *Estimate, no 06/07 tax bill - listed as gov't owhed* (408) 792-5010 $ 6.00 County of Santa Clara (800) 273-5167 $ 9.00 City of Cupertino (408) 777-3242 $ 13.00 Fremont Union High School District Cupertino Sanitary District 1~r:.11~ :<(.1. J...... wr.] 1IIIIlllllli"ll ~11 ~[:.+-""Imfil';l. Community Facilities District No. 2005.1 Clean Safe Creeks Special Tax Flood Prevention Assessment (Northwest) *Estimate, no 06/07 tax bill - listed as gov't bwned* School Parcel Tax Sewer Service Charge *Estimate, no 06/07 tax bill - listed as gov't owned* (408) 293-2326 x3003 $ 34.00 Santa Clara County Library District JPA Santa Clara Valley Water District Santa Clara Valley Water District (408) 265-2607 x2323 (408) 265-2607 x2810 $ 46.00 $ 49.00 (650) 522-2210 (408) 253-7071 $ 99.00 $ 253.00 Total Special Assessments: $ 509.00 Total 2006/07 Tax Bill: $ 509.00 Please refer to the Notice of Special Tax and Assessment for statutory disclosure information on the following page. Order Number: 80751 Page 3 of 9 Report Date: 4/18/2007 Copyright 2001-2006 Alliant Tax Research, Inc Statutory Notice of Special Tax/Assessment To the prospective purchaser of the real property known as: Assessor's Parcel Number: Address/Legal Description: Report Date: 342-17-025 Nla San Juan Rd , Cupertino, Ca 95014 4/1812007 . I This is a notification to you prior to your purchasing this property. Mello-Roos Community Facilities Districts: . This property is subject to a special tax named below, which is in addition to the regular property taxes and any other charges and benefit assessments on the parcel. The special tax may not be imposed on all parcels within the city or county where the property is located. If you fail to pay this tax when due each year, the property may be foreclosed upon and sold. The tax is used to provide public facilities or services that are likely to particularly benefit the property. There is a maximum tax that may be levied against this parcel each year to pay for public facilities. This amount may be subject to increase each year based on the special tax escalator listed below (if applicable). The annual tax charged in any given year may not exceed the maximum tax amount. However, the maximum tax may increase if the property use changes, or if the home or structure size is enlarged. The special tax will be levied each year until all of the authorized facilities are built and all special tax bonds are repaid. If additional bonds are issued, the estimated end date of the special tax may be extended. The authorized facilities which are being paid for by the special taxes and the money received from the sale of the bonds are summarized below. These facilities may not yet have all been constructed or acquired and some may never be constructed or acquired. A /0' tr' t d' Start Year I 2006/07'. I gency IS IC Improvements an Services E -d- Y- - - --L --- MaXimum Tax Esca ator n ear I evy Santa Clara County Library District JPA Community Facilities District No. 2005-1 Contact: Gay Strand Phone: (408) 293-2326 x3003 Funding for library services (note: max tax varies based on development classification and will change when developed--SFR max is $42) *Estimate, no 06/07 tax bill - listed as gov't owned* 2005 $ 34.00 $42 for 2006/07 0% Until services end You should take this tax and the benefits from the public facilities and services for which it pays into account in deciding whether to buy this property. You may obtain a copy of the resolution of formation which authorized creation of the community facilities district, and which specifies more precisely how the special tax is apportioned and how the proceeds of the tax will be used, by calling the contact name and number listed above. There may be a charge for this document not to exceed the estimated reasonable cost of providing the document. 1915 Act Bond Assessment Districts: This property is within the assessment district(s) named below. Each assessment district has issued bonds to finance the acquisition or construction of certain public improvements that are of direct and special benefit to property within that assessment district. The bonds will be repaid from annual assessment installments on property within the assessment district. This property is subject to annual assessment installments of the assessment district that will appear on your property tax bills, but which are in addition to the regular property taxes and any other charges and levies that will be listed on the property tax bill. If you fail to pay assessment installments when due each year, the property may be foreclosed upon and sold. The annual assessment installment against this property as shown on the most recent tax bill for the 2006/07 tax year is listed in the table below. Assessment installments will be collected each year until the assessment bonds are repaid. The public facilities that are being paid for by the money received from the sale of bonds that are being repaid by the assessments are included in the table below. These facilities may not yet have all been constructed or acquired and it is possible that some may never be constructed or acquired. This parcellS NOT subject to any 1915 Act Bond special assessments. You should take this assessment and the benefits from the public facilities for which it pays into account in deciding whether to buy this property. You may obtain a copy of the resolution confirming assessments that specifies more precisely how the assessments are apportioned among properties in the assessment district by calling the contact name and number listed above. There may be a charge for this document not to exceed the estimated reasonable cost of providing the document. Order Number: 80751 Page 4 of 9 Report Date: 4/18/2007 Copyright 2001-2006 Alliant Tax Research, Inc Other Special Assessments This section provides detail on other assessments (aside from the Mello-Roos and 1915 Act charges identified on the prior pages) that will affect the property. Other Special Assessment Liens/Financing: In some instances, local govemment agencies may use alternate means of financing projects, including state loans, agency loans, 1911 Act assessment district bonds, other types of improvement bonds, and other methods to pay the cost of a capital project. Also, there may be other fixed schedule items on the tax bill that must be paid over a number of years. In some cases, these amounts may be prepaid. Also, for internally finahced projects, the loan may need to be paid off prior to transfer of property. Fremont Union High School District School Parcel Tax Preserve core academic classes, continue programs and maintain qualified teachers/staff (senior exemption available for 65 +) *Estimate, no 06/07 tax bill - listed as gov't owned* Improvements to promote clean creeks and natural flood protection *Estimate, no 06/07 tax bill - listed as gov't owned* 2011/or renewal Nancy Marsalli (650) 522-2210 End Year Contact Phone ! 2006/07 Levy $ 99.00 . . . I I' . . .. 2005 Santa Clara Valley Water District Clean Safe Creeks Special Tax 2000 2015 Spec Tax/Asmt Hotline (408) 265-2607 x2323 $ 46.00 Other Direct Assessments: In addition to the items listed in the previous sections, as of the 2006/07 tax year, your property is subject to the following additional Direct Assessments that do not impose special accelerated foreclosure liens on your property. . . . . II. I Santa Clara Valley Water District Flood Prevention Assessment (Northwest) *Estimate, no 06/07 tax bill - listed as gov't owned* $ 49.00 Contact Phone Spec Tax/ Asmt Hotline (408) 265-2607 x2810 County of Santa Clara Mosquito, Vector and Disease Control Assessment *Estimate, no 06/07 tax bill - listed as gov't owned* Vector Control Fee *Estimate, no 06/07 tax bill - listed as gov't owned* Sewer Service Charge *Estimate, no 06/07 tax bill - listed as gov't owned* Storm Drain Fee *Estimate, no 06/07 tax bill - listed as gov't owned* $ 9.00 County of Santa Clara $ 6.00 Cupertino Sanitary District $ 253.00 City of Cupertino $ 13.00 Jeanette Hynson (800) 273-5167 Tim Mulligan (408) 792-5010 Carl Beckham (408) 253-7071 Lavenia Millar (408) 777-3242 These direct assessments and charges will appear annually on your property tax bill. In most cases, these are subject to public notice and hearing requirements (as controlled by Proposition 218) and any increases or additions must be approved by a vote of the registered landowners (or registered voters, depending upon the specific legislation). While they do not impose an accelerated foreclosure lien, they do result in an increased annual tax rate. For additional information on a particular special assessment, please call the phone number listed above. Order Number: 80751 Page 5 of 9 Report Date: 4/18/2007 Copyright 2001-2006 Alliant Tax Research, Inc Accelerated Foreclosure SummarysM Important: If any items are listed below, .your property has accelerated foreclosure liens attached to it. These have priority over other property taxes, and are part of the security for a municipal bond issue (or else are part of a Mello-Roos community facilities district). The issuers of these bonds are often contractually required to monitor and collect delinquent assessments quickly. There is no five year waiting period. If you fail to pay your property tax bills when due each year, the property may be foreclosed upon and ~old. Therefore, it is important to pay your property tax bill on time. If you cannot, you should contact your lender to discuss alternate arrangements. . Mello-Roos Community Facilities Districts: Agency/District I 2006/07 Tax Year Information Santa Clara County Ubrary District JPA The amount charged for the 2006/07 tax year was $ 34.00. Community Facilities District No. 2005-1 The maximum amount that could have been charged (worst case) was $42 for 2006/07. This maximum amount will increase each year in the future, if applicable, by 0%. This tax will be charged until Until services end. *Note{)n Backup Taxes: If a "backup tax" is mentioned above, this tax has been established to be used as a worst case scenario, only if revenue is needed in anyone year to meet bondholder payments. The likelihood of a tax reaching this backup level is low. However, property owners should be prepared for this as a worst case scenario if the development in the district does not proceed as planned. Once the district is developed and properties are sold to many owners, the likelihood of the actual tax ever reaching this amount is very low. 1915 Act Bond Assessment Districts: Agency/District 2006/07 Tax Year Information No 1915 Act Bond Districts. Other Districts That Include (or May Include) Accelerated Foreclosure: No Additional Accelerated Foreclosure Districts. 2006/07 Tax Year Information Agency/District Note: Many properties in California have Mello-Roos or other bonded assessments. As a result, these properties usually have newer amenities and other benefits that may enhance property value. However, if any items are listed on this page, as a buyer it is important to pay your tax bill on time, or arrange to have your property taxes impounded, to avoid penalites or the threat of accelerated foreclosure. Order Number: 80751 Page 6 of 9 Report Date: 4/18/2007 Copyright 2001-2006 Alliant Tax Research, Inc Available Senior Citizen ~xemptionssM Assessments with an available exemption: , Note: The following districts offer a senior citizen exemption for all or part of the annual assessment, which may save qualifying buyers money. Normally an application must be filed with the district and renewed annually. For details on eligibility, and how to apply, please use the contact information supplied below: . Agency Direct Assessment Description I 2006/07 Levy Contact Phone Fremont Union High School District School Parcel Tax / Preserve core academic classes, continue programs and maintain qualified teachers/staff (senior exemption available for 65+) *Estimate, no 06/07 tax bill - listed as gov't owned* $ 99.00 Nancy Marsalli (650) 522-2210 Notice of Supplemental Property Tax Bill Copyright - 2006 First American NHD Pursuant to Civil Code S11 02.6c, Seller or his or her agent is providing this "Notice of Your 'Supplemental' Property Tax Bill": California property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan closes. The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account, the supplemental tax bills will not be paid by your lender. It is your responsibility to pay these supplemental bills directly to the Tax Collector. If you have any question concerning this matter, please call your local Tax Collector's Office. " Explanation of Supplemental Assessments As stated in the official "Notice" above, State law requires the Assessor to reappraise property upon change in ownership or completion of new construction. The resulting supplemental assessment reflects the difference between the new value and the bid value. The Auditor-Controller calculates the supplemental property tax, and prorates it, based upon the number of months remaining in the fiscal year in which the event occurred. The fiscal year runs from July 1 through June 30. A change in ownership or new construction completion which occurs between January 1 and May 31 results in two supplemental assessments and two supplemental tax. bills. The first supplemental bill is for the remainder of the fiscal year in which the event occurred. The second supplemental bill is for the subsequent fiscal year. Notices of Assessed Value Change are normally mailed to property owners before supplemental tax bills are issued. Remember that supplemental tax bills are in addition to the regular annual tax bills. Supplemental bills go directly to the property owner, and not to an impound account - where one might exist. On following of this report, a SUPPLEMENTAL TAX BILL(S) ESTIMATOR is provided for the buyer to estimate the amount of the supplemental tax bill(s). It does NOT include the amount of the regular secured Property Tax Bill. It is only and estimate for the buyer's planning purposes. Order Number: 80751 Page 7 of 9 Report Date: 4/18/2007 Copyright 2001-2006 Alliant Tax Research, Inc Tax Estimators Copyright - 2006 First American'NHD Proper:tY Tax Estimator The subject property did not receive a 2006/07 tax bill, so information is not available to provide a tax estimator table. All information provided is based on the parent parcel which received the tax bill for the 2006/07 tax year. Supplemental Tax Bill Estimator The subject property did not receive a 2006/07 tax bill, so information is not available to provide a supplemental tax estimator table. All information provided is based on the parent parcel which received the tax bill for the 2006/07 tax year. Order Number: 80751 Page 8 of 9 Report Date: 4/18/2007 Copyright 2001-2006 Alliant Tax Research, Inc General Information about Your Property Tax Bill California's secured property tax bills consist of two types of charges: 1) ad valorem taxes and 2) special assessments. These are explained briefly below. 1) Ad Valorem Taxes Ad valorem taxes are based on the value of property. The basic ad valorem tax is the statewide tax authorized by California law. This general tax is 1 % of the assessed value of the property each year. This tax is shared by the state, schools, cities and counties. In addition, voters can approve local additional ad valorem overrides that put the ad valorem tax rate over 1 %. These overrides normally involve general obligation bond debt. These general obligation bonds do not place a special lien on anyone property but simply increase the ad valorem tax rate slightly over 1 %. 2) Special Assessments Anything that is not an ad valorem tax is called a "special assessment" or a "direct assessment." These charges are local in nature and are used to fund local improvements or public services that provide some type of general or direct benefit to the property. Special assessments are not tax rates and by law cannot be based on the value of property. Instead, each special assessment district has some type of benefit formula that is used to calculate the amount of the assessment on each parcel. Special assessments can be levied using a variety of laws, including the Mello-Roos Community Facilities Act of 1982; various assessment district bond acts such as the 1915 Act or 1911 Act; or through a variety of non-bonded charges such as the 1972 Act Landcape and Lighting Act, the 1982 Benefit Assessment Act, user fees, service charges and other methods. Some commonly used types of special assessments are: a) Mello-Roos Community Facilities Districts. This is a type of special assessment financing frequently used to fund infrastructure, schools and many types of public services such as police, fire, landscaping, etc. A Mello-Roos district mayor may not in\IClve a bond sale. Mello-Roos districts place a senior lien on the property that has a provision for accelerated foreclosure action by the levying agency if property taxes are not paid on time. Because of this, California law now requires disclosure of Mello-Roos taxes in real estate transactions. b) 1915 Bond Act Assessment Districts. This is another type of special assessment financing method frequently used to fund infrastructure and other public improvements in California. The 1915 Act is a bond act only, meaning another assessment district formation act must be used to form the boundaries of the district before 1915 Act bonds may be sold. These formation districts are usually one of these: the 1913 Act, the 1911 Act or the 1972 Act Issuance of 1915 Act bonds pi aces a senior lien on the property that has a provision for accelerated foreclosure action by the bond issuer if property taxes are not paid on time. Because of this, California law now requires disclosure of assessments securing 1915 Act bonds in real estate transactions. c) Other Bonded Districts. In addition to Mello-Roos and the 1915 Act, there are other types of land-secured bonds that may impact California property. These include improvement bonds issued under the 1911 Act or other improvement bonds issued under county or charter city laws. Some of these do include the power of accelerated foreclosure; the Alliant tax report will include such items on the "Summary of Items Subject to Accelerated Foreclosure" page. d) Maintenance Districts. In most newer communities in California, the cost of maintaining common areas, landscaping, street iighting, storm drains and parks is often handled through Landscape and Lighting Maintenance Assessment Districts. These may be formed under the 1972 Landscaping and Lighting Act or other legislation; these are approved annually through a public hearing process. They may have a cost-of-living increase or other formula but must be renewed every year. These districts are often referred to as "cost recovery districts" since they provide a means for government to provide a specific service and have the cost recovered through assessing those properties that benefit from the services. e) User Fees and Service Charges. Many municipalities charge user fees for services to the property such as water and sewer. Instead of billing the property owner directly for monthiy or quarterly fees, the service charge is collected annually on the property tax bilt f) Standby or Availability Charges. Local agencies that provide water and sewer services are also authorized to levy Standby or Availability Charges. These annual assessments are charged to help fund the future availability of services to the area or the expansion of services to meet future growth. g) County Service Areas, Community Services Districts and Permanent Road Divisions. In unincorporated areas of a county, the county may provide services to specific areas through the formation of a County Service Areas ("CSA") or a Community Services District Then, a specific community may receive enhanced services such as road maintenance, landscaping, street lighting and park maintenance, and repay the county (or itself, if a Community Services District) through special service charges or assessments. Permanent Road Divisions are a similar type of entity formed by a county to provide road improvement and maintenance in unincorporated areas. h) Benefit Assessments and Parcel Taxes. School Districts and other local agencies commonly levy \lCter-approved annual special parcel taxes or benefit assessments. These are annual charges that pay for specific service. Commonly used benefit assessments and parcel taxes are those to pay for schools, fire protection, flood control and storm water maintenance or police services. i) Penalties. Local agencies have the ability to place delinquent account charges for property related services or civil penalties directiy on the tax bill. These.may include delinquent utility bills, fees for parcel cleanup and weed abatement and fees for civil penalties. Order Number: 80751 Page 9 of 9 Report Date: 4/18/2007 Copyright 2001-2006 Alliant Tax Research, Inc