STG Recharacterization of Synthetic Lease Endorsement 1

This form should not be used if a comparable ALTA version is available. If a comparable ALTA version is available, the most current version of the ALTA form available in each state should be used, unless approved by a Stewart underwriter.

RECHARACTERIZATION OF SYNTHETIC LEASE ENDORSEMENT

 Commitment No. 
 STEWART TITLE GUARANTY COMPANY

1. The following exception is added to Schedule B:

2. The following exception is added to Schedule B:

3. Owner's Policies No. _______________ and Loan Policy(ies) No. _____________ have been issued concurrently to insure alternative __________ in the land described in Schedule A of each policy. These policies do not insure against loss or damage (and the Company will not pay costs, attorney's fees or expenses) which arise by reason of any assertion that the title to the land is insured by one of the alternative policies, but not either of the others.

4. If the Company pays for loss or damage to the insured, and any costs, attorney’s fees or expenses which it becomes obligated to pay under any of the above policies, it shall have fully performed its obligations with respect to that matter and shall not be liable under the other policies for any loss or damage caused thereby.

5. If the title is determined to be vested as stated under any of the above policies, and the company:

6. Neither policy insures against loss or damage (and the Company will not pay costs, attorney's fees or expenses) which arise by reason of a claim that the title to the land is unmarketable by reason of any provision in the documents of the transaction creating the interest of the insured.

7. The total liability of the Company under the politics identified in this exception shall not exceed _____________________ but its liability in this policy for the land described in Schedule A remains governed by the provisions of Paragraph 7 of the Conditions and Stipulations of this Policy.

8. Payments made on account of loss or damage insured against under any of these policies shall be made to __________________ (the "Agent"), as insured under Policy No. ______________ until such time as (A)(i) the mortgage to the Agent Insured under Policy ___________ is satisfied, (ii) the lease dated as of _______________, made by _____________________, as Lessor and ____________________, as Lessee has been terminated and (iii) the mortgage contained in the lease in item (ii) above has been satisfied, or (B) the mortgages and the lease in items (A)(i), (ii) and (iii) are all assigned to other holders of the interests therein.

9. Any payment by the Company on any of the policies listed herein shall reduce pro tanto the liability of the Company under each of these policies, and the amount so paid shall be deemed a payment under all of them.

The total liability of the Company under said policy or under this and any prior endorsements thereto shall not exceed, in the aggregate, the amount of liability stated on the face of said policy, as the same may be specifically amended in dollar amount by this or any prior endorsements, and the costs which the Company is obligated to pay under the Conditions and Stipulations of the policy. This endorsement is made a part of said policy or certificate and is subject to the terms thereof, except as modified by the provisions hereof. Nothing herein contained shall be construed as extending or changing the effective date of the aforesaid policy or certificate unless otherwise expressly stated.