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LOCATION AND SIZE: In Tehama County, adjacent to Pine Creek Road at Montecito Road. Approximately 420 acres divided into 48 lots or parcels.

LASENENTS: Easements for utilities, rights of way, and other purposes are shown on the title report and subdivision map recorded in the Office of the Tehama County Recorder, Book "S" of Maps, Pages 126-132.

MINERAL RIGHTS: You will not own the mineral, oil, and gas rights under your land. These have been reserved as follows:

EXCEPTING all oil, oil rights, minerals, mineral rights, natural gas, natural zas rights, and other hydrocarbons by whatsoever name known that may be located below the above described property, without the right of surface entry to a depth of 500 feet below the surface of said lands, as conveyed in the deed from Nichols Developsent Inc., a California Corporation, to Frank B. Nichols and Darlene M. Nichols, recorded September 19, 1977 as Instrument No. 9789, which deed recites in part: (1) "TOGETHER WITH the perpetual right of drilling, mining, exploring, and

operating therefor and removing the same from said land or any other
land, including the right to whipstock or directionally drill and mine
from lands other than the said lands, oil or gas wells, tunnels and
shafts into, through or across the surface of the said land and to
bottom whipstocked or directionally drilled wells, tunnels and shafts
under or beneath or beyond the exterior limits thereof, and to redrill,
retunnel, equip, maintain, repair, deepen and operate any such wells

or nines from, through, or within or under the parcels of land described." (2) "GRANTOR hereby grants to Grantee all of the necessary rights to the į

of the surface for oil and gas well drill sites as to Lot 41 along wit..
all the necessary rights for ingress and egress for roads, pipelines, and
utility lines to and from said drill site lands across common road case-
rents as shown on said Subdivision Map, and the necessary rights for
maintenance, repairs, and replacement."

USES AND ZONING: This subdivision is zoned R1-A-T-B:2, One Family ResidentialAgricultural-Special Trailer Site-Special Building Site. PESTRICTIONS: This subdivision is subject to restrictions recorded in the Office of the Tenata County Recorder, Book 725, Page 650, which include, among other provisions, the following:

Prior to any construction, you must obtain approval of your plans by the Architectural Control Committee. This committee is appointed by the subdivider.

Building Restrictions:

Minimum size house shall be one thousand square feet of indoor living area. Architecture shall be rustic or ranch style.

Exterior colors shall be natural "earth colors" such as grey, green, brown, dull red, gold, dull yellow, etc.

Roof color shall be dark. White or very light colors are not allowed on roofs.

Whenever construction of any building, or other structure shall be commenced, it shall be diligently prosecuted to completion and in no event shall completion be later than one hundred eighty days for the exterior of the building from commencement

thereof.

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Only NEW mobile homes shall be allowed to be placed on said Properties.

Minimum size mobile home shall be a 20 foot double wide exclusive of any expando rooms and shall contain not less than one thousand square feet of living area exclusive of trailer hitch, overhang, or porches.

Mobile home siding shall be a rustic wood, wood textured masonite or shiplap. Metal siding is not allowed.

Roofing shall be composition shingle, wood shake or other roofing material approved by the Board, however metal roofing is not allowed.

Skirting to match siding or to be of a rustic wood type and skirting to be installed within 90 days after mobile home is placed on the lot.

Metal skirting is NOT ALLOWED. Structures or roofs covering the mobile home shall not be permitted and the height of structures adjoining or near the mobile home such as a carport or cabana shall not exceed the height of the mobile home unle66 specifically approved in writing by the Architectural Control Committee prior to construction.

FOR INFORMATION AS TO YOUR OBLIGATIONS AND RIGHTS, YOU SHOULD READ
THE RESTRICTIONS. THE SUBDIVIDER SHOULD MAKE THEM AVAILABLE TO YOU.

TAX ESTIMATES: If the subdivider is unable to give you the current tax information for your lot, you may approximate your taxes as follows:

TAKE 25% OF THE SALES PRICE, DIVIDE BY 100, AND THEN MULTIPLY BY THE
TOTAL TAX RATE. THE TAX RATE FOR THE 1976-77 FISCAL YEAR IS $8.57.
THE TAX RATE AND ASSESSED VALUATION MAY CHANGE IN SUBSEQUENT YEARS.
FOR EXAMPLE, ANY BONDED DEBT OR SPECIAL DISTRICT ASSESSMENT APPROVED
AFTER THE ABOVE TAX RATE HAD BEEN SET COULD INCREASE THE FUTURE RATE.

CONDITIONS OF SALE: If your purchase involves financing, a form of deed of trust and note will be used. These documents contain the following provisions:

Installment Note. The following applies only to an installment note
which may be used as a part of financing for this subdivision.

Late Charge. Any payment reaching Beneficiary or his designated agent
more than 15 days after the due date of the monthly installment, or any
payment by check that is dishonored by Trustor's Bank for any reason,
shall, at the option of the Beneficiary or his agent, be subject to a
late charge to defray added administrative expenses in the amount equal
to 5% of said installment, however in no case shall said late charge be
less than $5.00. Failure to pay such late charge when called for by
Beneficiary shall constitute a default and afford Beneficiary the same
remedies as provided herein for default in an installment payment.

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CONDITIONS OF SALE-Continued :

Allocation of Payment. Each payment received shall be credited first to the late charge, if any, then to the interest due, and the remainder on the principal balance.

Dishonored Check. In the event a payment is dishonored by Trustor's
bans ior any reason whatsoever, Beneficiary or his designated agent
shall have the option of requiring ALL payments thereafter be made in
the form of a money order, cashier's check or certified funds. Failure
by Beneficiary or his agent to exercise any of the options herein
specified shall not constitute a waiver of his right to exercise such
options for subsequent defaults.

PURCHASE MONEY HANDLING: The subdivider must impound all funds received from you in an escrow depository until legal title is delivered to you. (Refer to Section 11013.4(a) of the Business and Professions Code.)

FILLED GROUND: The subdivider's engineer advises as follows:

The grading of this subdivision is confined to road construction only
and no fills on lots exist or are planned. Fills on roads will not
exceed 10 feet in depth and have been constructed to meet Tehama County
specifications.

WATER: There is no regular water service to this tract. Private water wells are the only source of water in this tract and you will be required to pay all costs to have a well installed. The subdivider's well driller has submitted the following information:

Potable water in suitable quantities for domestic use may be found from 150 feet to 200 feet deep. Cost of drilling and casing a 6" well in this area is $10.00 per foot. A pump and pressure system could be around $350.00 installed.

Cehana County Health Department advises that there should be no problem obtaining individual wells and potable water provided the well installation is located and constructed properly.

The State Water Code requires a Notice of Intention to drill a well and a Report of Completion to be filed with the Department of Water Resources.

PIRE PROTECTION: The California Department of Forestry will serve the Pine Creek
Estates Subdivision as follows:

In the event of unwanted fires, the following fire suppression equipment would respond to this area. Triple combination, structure type engines would respond year around from Red Bluff and Proberta Schedule "A" Stations.

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In addition to the above, Tehama Rural Fire Units from Volunteer
Fire Departments located at Antelope, Bend and Bowinan would be
initially dispatched if required. During the fire season (dry
months) CDF equipment from the California Department of Forestry
Headquarters in Red Bluff, Baker and Red Bank Stations would re-
spond if necessary.

During the summer months, most of the Tehama County lands are dry
and fire hazardous.

ELECTRICITY: "Pacific Gas and Electric Company advises that an electric extension of approximately 5,700 feet would be required to serve Lot No. 17, which is the farthest from our existing electric distribution facilities.

In view of the disproportionate ratio between the cost of extending electric facilities to the farthest lot, and the anticipated annual revenue, it would not be economically feasible to establish service to a single residential applicant under the standard provisions of our extension rule. The exceptional cases provisions of the rule might be invoked requiring, in addition to the extension advance, the payment of cost of ownership charges. Therefore, based on current costs, it may cost roughly $38,000 to make electric service available to the most remote lot. Any extension to and within this development would be dependent upon acquiring satisfactory rights of way.

Since the 48 lots shown on the map are 5 - 27 acres and larger in size, the above costs are based on overhead construction; however, to permit overhead construction, the following conditions apply:

(1)

Local ordinances do not require underground construction.

(2)

Local ordinances or land use policies do not permit further
division of the parcels involved such that parcel sizes less
than 3 acres could be formed.

(3)

Local ordinances or deed restrictions do not allow more than
one ngle family dwelling or accommodation on each parcel of
less than 3 acres, or any portion of a parcel of less than 3
acres.

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GAS:

Natural gas is not available.

TELEPHONE:

Pacific Telephone and Telegraph Company advises as follows:

"We may not be able to provide telephone service to applicants located
within this development until approximately the first quarter of 1978.
The reinforcement of our facilities from our central office to this
area is scheduled in the first quarter of 1978.

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ILLIPHONE - Continued:

"As the developer is not providing telephone facilities in this develop-
ment and the development is outside our Base Rate Area, the individual
applicant would be required to pay in advance a line extension charge
to and upon the property to be served equal to 50% of the total costs
of constructing facilities to the property and 75% of the total costs
within the property boundaries. These amounts would include a free ex-
tension of 1,000 feet to the property and 300 feet on the property to be
served, as provided for in Schedule 23T of our tariffs. This charge could
amount to as much as $9,612.00 and is based on the lot furthest from our
existing aerial facilities. Any other lot would have to be figured on an
individual basis and could be of a lesser amount. The above charges are
in accordance with Schedule 23T of our tariffs.

We plan to extend our facilities into the development from existing aerial
facilities on Pine Creek Road, although no determination has been made
whether to serve underground or aerial.

If the underground facilities are requested, the applicant will be required
to furnish, install, and maintain the underground supporting structure on
the property to be served as well as a suitable building entrance arrange-
sent. The underground supporting structure is usually a trench and backfill,
but conduit is occasionally required at the discretion of the Telephone
Company. Building entrance arrangements usually consist of a short section
of conduit from the bottom of the trench to the wall mounted termination
point. Normal service connection charges will apply."

SEWAGE DISPOSAL: Septic tanks will be used for sewage disposal,

You must pay for pour septic tank. Prior to commencing construction, you should contaci the local health department for specifications, requirements, and any local problems.

The Tehama County Health Department advises as follows:

Twenty soil profiles were evaluated in the subdivision and all showed
good leach field percolation. Due to the size of the lots and numerous
potential building sites, a soil percolation test may be required by
this department prior to obtaining a building permit from the Tehama
County Building and Safety Department.

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The subdivider's engineer advises as follows:

The septic system for two bedroom homes with 1,000 gallon tank and
leachline, with leachline varing from perk test would be approximately
$700 to $900.00.

The septic system for three bedroom homes with 1,200 gallon septic
tank and leachlines would be approximately $750 to $1,000.00.

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