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SCHEDULE B - Section 2 <br />EXCEPTIONS <br />Order Number: <br />The policy or policies to be issued will contain exceptions to the following unless the same <br />are disposed of to the satisfaction of the Company: <br />1. Rights or claims of parties in possession, not shown by the public records. <br />2. Easements, or claims of easements, not shown by the public records. <br />3. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, and any facts <br />which a correct survey and inspection of the premises would disclose, and which are not <br />shown by the public records. <br />4. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, <br />imposed by law and not shown by the public records. <br />5. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing <br />in the public records or attaching subsequent to the effective date hereof, but prior to the date <br />the proposed insured acquires of record for value the estate or interest or mortgage thereon <br />covered by this commitment. <br />6. Unpatented mining claims; reservations or exceptions in patents, or an act authorizing the <br />issuance thereof, water rights, claims or title to water. <br />7. Any and all unpaid taxes, assessments and unredeemed tax sales. <br />8. All existing roads, highways, ditches, utilities, reservoirs, canals, pipelines, power lines, <br />telephone lines, water lines, railroads, and rights of way and easements therefor. <br />9. Right of Way for county roads 30 feet wide on either side of section and township lines, as <br />established by the Board of County Commissioners for Weld County, recorded October 14, <br />1889 in Book 86 at Page 273. <br />10. A Condition contained in the United States Patent recorded April 11, 1936, in Book 991, at <br />Page 242, Weld County Records, which states as follows: "Subject to any vested and accrued <br />water rights for mining, agricultural, manufacturing or other purposes, and right to ditches <br />and reservoirs used in connection with such water rights, as may be recognized and <br />acknowledged by the local customs, laws and decisions of Courts; and there is reserved from <br />the lands hereby granted, a right of way thereon for ditches or canals constructed by the <br />authority of the United States." <br />Stewart Title Guaranty Company for Fort Collins Division <br />Commitment - Schedule B 2 <br />Pagel of 2