Commonwealth Land Title Insurance Company, NCS

ALTA ENDORSEMENTS - 124 - SAMPLES AND DESCRIPTIONS MEZZANINE FINANCING – FORM 16-06 ALTA Endorsement — Form 16-06 is available on owner’s policies only. This endorsement provides insurance to a lender whose loan is not secured by a lien against the Land, but rather by purported security against the beneficial interest of the business entity that owns the Land, such as the stock in a corporation, partnership interest in a partnership, or membership interest in a limited liability company. The endorsement is made a part of an Owner’s Policy rather than a Loan Policy, because the lender’s personal property security interest is not being insured. The endorsement assigns the rights under the policy of the Insured owner of the Land (i.e. the Borrower or Pledgee) to the defined Mezzanine Lender. The endorsement provides that the Company will not assert as a defense matters known to the Insured owner, as long as they were not known to the Mezzanine Lender. Exclusions from Coverage No. 3 (a) and (b) under the Policy are amended with respect to defects, liens, encumbrances, adverse claims or other matters which were not known to the Mezzanine Lender, which is similar to the Non-Imputation coverage given by the ALTA 15-06 series of endorsements. It further provides that the Company will not deny liability on the basis that ownership interests in the Insured have been transferred to or acquired by the Mezzanine Lender, which is comparable to the coverage provided by a Fairway Endorsement under the write up herein. This endorsement amends paragraph 7(b) of the Conditions of the policy to provide that the Company can terminate its liability under the policy by paying the Mezzanine Lender rather than the Insured. It is signed by the title company, the Insured and the Mezzanine Lender. ALTA Endorsement — Form 16-06 (Mezzanine Financing – 6/17/06) Form 16-06 Mezzanine Financing