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HomeMy WebLinkAboutRutkoski, Henry M & Helen SGREGORY F. YAKABOSKI TOWN ATTORNEY greg.yakaboski@town.southold.ny.us PATRICIA A. FINNEGAN ASSISTANT TOWN ATTORNEY patricia.finnegan@t own. southold.ny.u~ JOSHUA Y. }{ORTON Supervisor Town Hall, 53095 Route 25 P.O. Box 1179 Southold, New York 11971-0959 Telephone (631) 765-1939 Facsimile (631) 765~1823 OFFICE OF THE TOWN ATTORNEY TOWN OF SOUTHOLD To: From: Date: Re: Elizabeth A. Neville Town Clerk Gregory F. Yakaboski, Esq. Town Attorney June 26, 2003 Henry M. & Helen S. Rutkoski to Town of Southold Development Rights Easement SCTM #1000-108-2-3 & 1000-115-2-10 Betty: Enclosed for safekeeping in your office, please find the following documents: · Suffolk County Clerk Records Office Recording Page · Suffolk County Recording & Endorsement Page · Original Deed of Development Rights dated April 7, 2003, between Henry M. Rutkoski & Helen S. Rutkoski and the Town of Southold, recorded in the Suffolk County Clerk's office on 6/4/03, in Liber D00012254 at Page 671 · Original Title Insurance Policy #RH80030193, dated May 29, 2003, issued by LandAmerica*Commonwealth in the amount of $528,299.10 · Closing Statement Thank you. Greg /md encs. cc; Melissa Spiro, Land Preservation Coordinator w/encs. Assessors w/copy of recorded deed Town Board w/closing statement Land Preservation Committee w/closing statement SUFFOLK COUNTY CLERK RECORDS OFFICE RECORDING PAGE Type of Instrument: DEEDS/DDD Number of Pages: 17 TRANSFER TAX NUMBER: 02-42064 District: 1000 Deed Amount: Recorded: At: LIBER: PAGE: Section: Block: 108.00 02.00 EXAMINED AND CHARGED AS FOLLOWS $528,299.10 Received the Following Fees For Above Instr%unent Exempt Page/Filing $51.00 NO Handling COE $5.00 NO NYE SURCHG EA-CTY $5.00 NO EA-STATE TP-584 $5.00 NO Cert. Copies RPT $50.00 NO SCTM Transfer tax $0.00 NO Comm. Pres Fees Paid TRANSFER TAX NUMBER: 02-42064 THIS PAGE IS A PART OF THE INSTRUMENT Edward P.Romaine County Clerk, Suffolk County 06/04/2003 03:23:55 PM D00012254 671 Lot: 003.000 Exempt $5.00 NO $15.00 NO $5O.OO NO $8.50 NO $0.00 NO $0.00 NO $194.50 Number of pages /7 TORRENS Serial # Certificate # Prior Cfi. # Deed / Mortgage Instrument Deed / Mortgage Tax Stamp FEES Page / Filing Fee Handling TP-584 5. 00 Notation EA-52 17 (County) EA-5217 (State) '~(-) __ R.P. TS.A. ~ rD . OD Comm. of Ed. 5. O0 Affidavit R~;g. COpy Other Sub Total Sub Total Grand Total 4 District Real Property Tax Service Agency Verification Sectio~,=~ Lot~~ 5 03020767 ~ooo xoaoo 0200 003000 1000 11500 0200 010002 Safisfactions~isch~ges~eleases List Prope~ Owners Mhling Ad,ess ~CORD & RET~N TO: CLERK O? SUFFOLK COUNT? L 900012254 Recording / Filing Stamps Mortgage Amt. 1. Basic Tax 2. Additional Tax Sub Total Spec./Assit. or Spec./Add. TOT. MTG. TAX Dual Town __ Dual County __ Held for Appointment ~ Transfer Tax Mansion Tax The property covered by this mortgage is or will be improved by a one or two family dwelling only. YES or NO If NO, see appropriate tax clause on page # __. of this i,n,c~a~ j;~e,,nt~ _ Community Preservation Cund Consideration Amount CPF Tax Due $ ~ Improved Vacant Land TD TD TD 7 [ - Title Company Informati°n Title #/~/7/ ,~d~(f~,~d2/(/~3 Suffolk County Recording This page forms part of the attached ~ t_:7/~7 2~-~//Wt~Z)~ & Endorsement Page (SPECIFY TYIPE OF INSTRUME4qT)-- The premises herein is situated in SUFFOLK COUNTY, NEW YORK. In the Township of '-C~/2>/-/v~f In the VILLAGE or HAMLET of made by: BOXES 6 THRU 8 MUST BE TYPED OR PRINTED IN BLACK INK ONLY PRIOR TO RECORDING OR FILING. (OVCT) DEED OF DEVELOPMENT RIGHTS THIS INDENTURE, made this ~day of April, 2003, BETWEEN HENRY M. RUTKOSKI and HELEN S. RUTKOSKI, residing at 18275 Main Road, Mattituck, New York, party of the first part, AND the TOWN OF SOUTHOLD, a municipal corporation having ks office and principal place of business at 53095 Main Road (Route 25), Southold, Town of Southold, County of Suffolk and State of New York, party of the second part; WlTNESSETH, that the party of the first part, in consideration of FIVE HUNDRED TWENTY-EIGHT THOUSAND TWO ~RED NINETY-NINE AND 10/100 ($528~299.10) DOLLARS, lawful money of the United States and other good and valuable consideration paid by the party of the second part, DOES HEREBY GRANT AND RELEASE unto the party of the second part, its successors and assigns forever, THE DEVELOPMENT RIGHTS, by which is meant the permanent legal interest and right, as authorized by section 247 of the New York State General Municipal Law, as amended, to permit, require or restrict the use of the premises exclusively for agricultural production as that term is presemly defined in Chapter 25 of the Town Code of the Town of Southold, and the right to prohibit or restrict the use of the premises and any structures thereon for any purpose other than agricultural production, to the property described as follows: PARCEL #1 ALL that certain plot, piece or parcel of land, situate, lying and being at Mattituck, in the Town of Southold, County of Suffolk and State of New York, bounded and described as follows: BEGINNING at a point on the southerly side of Middle Road (County Road 48) where same is intersected by the easterly side of land now or formerly of George Miaris and Sofia Miaris; RUNNING THENCE along the southerly side of Middle Road (County Rd 48) the following two (2) courses and distances: North 14 degrees 23 minutes 13 seconds East 257.30 feet; Easterly along the arc of a curve bearing to the right having a radius of 1909.36 feet a distance of 157.03 feet to land now or formerly of Casmo Carucci; RUNNING THENCE along said lands South 36 degrees 29 minutes 49 seconds East, 637.18 feet to land now or formerly Of LIRR; RUNNING TI:IENCE along said lands South 46 degrees 14 minutes 21 seconds West, 332.50 feet to land now or formerly of Miaris first above mentioned; RUNNING THENCE along said lands North 35 degrees 53 minutes 50 seconds West, 422.96 feet to the southerly side of Middle Road (County Rd 48) at the point or place of BEGINNING. BEING AND INTENDED TO BE the same premises identified as SCTM# 1000-108.00-02.00-003.000. PARCEL #2 cFJ ALL that certain plot, piece or parcel of land situate lying and being at Mattituck, in the Town of Southotd, County of Suffolk and State of New York, bounded and described as follows: BEGINNING at the southwesterly comer of the premises to be described, said point being distant North 26 degrees 00 minutes 00 seconds West 417.24 feet as measured along the easterly line of land now or formerly of Barney Sidor from the northerly side of Main Rd (State Rte 25); RUNNING Tlt~NCE along land now or formerly of Barney Sidor North 26 degrees 00 minutes 00 seconds West, 26.79 feet; RUNNING THENCE still along said land and along land now or formerly of Sidor and the Town of Southold North 31 degrees 15 minutes 40 seconds West, 105.28 feet; RUNNING THENCE still along land now or formerly of Sidor and the Town of Southold the following two (2) courses and distances: North 34 degrees 57 minutes 40 seconds West, 952.60 feet; North 35 degrees 29 minutes 30 seconds West, 1299.37 feet to land now or formerly of the LIRR; RUNNING THENCE along said lands North 46 degrees 14 minutes 21 seconds East, 335.31 feet to land now or formerly of Agnes B. Graboski; RUNNING THENCE along said lands the following two (2) courses and distances: South 36 degrees 09 minutes 45 seconds East, 2672.93 feet; South 34 degrees 24 minutes 53 seconds East, 199.04 feet to land now or formerly of Edward F. Rutkoski; RUNNING TItE~NCE along said lands the following three (3) courses and distances: South 74 degrees 04 minutes 37 seconds West, 114.38 feet; South 21 degrees 27 minutes 33 seconds East, 17.55 feet; South 76 degrees 45 minutes 31 seconds West, 120.00 feet to land now or formerly of Henry Rutkoski; RUNNING THENCE along said lands North 21 degrees 27 minutes 33 seconds West, 4.29 feet; RUNNING T[IENCE North 21 degrees 27 minutes 33 seconds West, 319.88 feet; RUNNING THENCE South 68 degrees 32 minutes 27 seconds West, 243.15 feet to the point or place of BEGINNING. BEING AND INTENDED TO BE the same premises identified as part of SCTM #1000-115.00-02.00-010.000. TOGETHER with the non-exclusive right, if any, of the party of the first part as to the use for ingress and egress of any streets and roads abutting the above described premises to the center lines thereof. TOGETHER with the .appurtenances and all the estate and rights of the party of the first part in and to said premises, insofar as the rights granted hereunder are concerned. TO HAVE AND TO HOLD the said Developmem Rights in the premises herein granted unto the party of the second part, its successors and assigns, forever; AND the party of the first part covenants that the party of the first part has not done or suffered anything whereby the said premises have been encumbered in any way whatever, except as aforesaid. The party of the first part, as a covenant running with the land in perpetuity, further covenants and agrees for the party of the first part, and the heirs, legal representatives, successors and assigns of the party of the first part, to use the premises on and after the date of this instrument solely for the purpose of agricultural production. This covenant shall run with the land in perpetuity. AND The party of the first part, as a covenant nmning with the land in perpetuity, further covenants and agrees for the party of the first part, and the heirs, legal representatives, successors and assigns of the pmty of the first part, that the parcels of real property described herein are open lands actually used in bona fide agricultural production as defined in GML section 247 and shall remain open lands actually used in bona fide agricultural production. This covenant shall mn with the land in perpetuity. AND the party of the first part, covenants in all aspects to comply with Section 13 of the Lien Law, as same applies with said conveyance. The SELLER acknowledges that it/he/she has been informed that neither the SELLER, nor his heirs, successors in interest, successors in title or assignees shall be permitted to remove soil from the property to be covered by these development rights. A purpose of this acquisition is to protect topsoil by limiting non-agricultural production uses of the land. The topsoil present on the premises consists of prime/unique/important soil. The representation is intended to also serve as a covenant nmning forever with the land in perpetuity. THE party of the first part and the party of the second part do hereby covenant and agree in perpetuity that either of them or their respective heks, successors, legal representatives or assigns, shall only use the premises on and after this date for the purpose of such agricultural production and the grantor covenants and agrees that the underlying fee title may not be subdivided into plots by the filing of a subdivision map pursuant to Sections 265, 276 and 277 of the Town Law and Section 335 of the Real Property Law, or any of such sections of the Town or Real Property Law or any laws replacing or in furtherance of them. The underlying fee may be divided by conveyance of parts thereof to heirs and next of kin, by will or by operation of law, or with the written recordable consent of the Purchaser. This covenant shall run with the land in perpetuity. If federal grants and/or funds are used and/or reimbursed to the town for this acquisition, the following sub-paragraphs shall apply and shall be covenants that shall run with the land in perpetuity: 1) the underlying fee may not be divided by conveyance of parts thereof to heirs and next of kin, by~ will or by operation of law, or with the written recordable consent of the Town unless each of the parcels of the property created by the proposed division or conveyance shall remain viable for agricultural production, either individually or as part of an established farming operation. 2) the United States Secretary of Agriculture shall be notified prior to such division or conveyance. Nothing contained herein shall prohibit the sale of the underlying fee or any portion thereofi THE word "partf' shall be construed as ifk reads "parties" whenever the sense of this indenture so requires. THE party of the first part, the heirs, legal representatives, successors and assigns of the party of the first part covenants and agrees that it will (a) not generate, store or dispose of hazardous substances on the premises, nor allow others to do so; (b) comply with all of the Environmental Laws; allow party of the second part and its agents reasonable access to the premises for purposes of ascertaining site conditions and for inspection of the premises for compliance with this agreement. (c) Where Federal grants and/or funds are used and/or reimbursed to the PURCHASER for this acquisition, representatives of the United States Department of Agriculture shall also have the right to enter the property for monitoring conservation plan implementation. This covenant shall mn with the land in perpetuity~ THE party of the first part, its heirs, legal representatives, successors and assigns of the pmty of the first part covenants and agrees that it shall indemnify and hold the United States of America and the Town of Southold and any of its officers, agents, employees, and, their respective successors and assigns, harmless from and against any and all damages, claims, losses, liabilities and expenses, including, without limitation, responsibility for legal, consulting, engineering and other costs and expenses which may arise out of (1) any inaccuracy or misrepresentation in any representation or warranty made by seller in this agreement/deed; (2) the breach or non-performance of any covenants required by this agreement/deed to be performed by the party of the first part, either prior to or subsequent to the closing of title herein; or (3) any action, suit, claim, or proceeding seeking money damages, injunctive relief, remedial action, or other remedy by reason of a violation or non-compliance with any environmental law; or the disposal, discharge or release of solid wastes, pollutants or hazardous substances; or exposure to any chemical substances, noises or vibrations to the extent they arise from the ownership, operation, and/or condition of the premises prior to or subsequent to the execution of the deed of Development Rights; or (4) the acts or omissions or negligence of the SELLER. This covenant shall run with the land in perpetuity. The following representations and warranties shall be binding upon SELLER and its successors and assigns, and shall inure to the benefit of PURCHASER (and the United States of America if Federal grants and/or funds are used and/or reimbursed to the PURCHASER for this acquisition) and its successors and assigns. Seller agrees to indemnify Purchaser ( and the United States of America if Federal grants and/or funds are used and/or reimbursed to the PURCHASER for this acquisition) if the following representations and warranties shall prove untrue: a) The SELLER represents that the premises are agricultural land used for bona fide agricultural production as defined herein. At no time, to the SELLER'S knowledge, has the premises been used for the generation, storage, or disposal of hazardous substances, or, as a landfill or other waste disposal site. There are not now, nor have there ever been, underground storage t~nk% to the SF.I.I.F.R'S knowledge, on the premises. b) The SELLER represents that there are no actions, suits, claims or proceedings seeking money damages, injunctive relief, remedial action or any other remedy pending or threatened relating to a violation or non-compliance with any Environmental Law; or the disposal, discharge or release of solid wastes, pollutants or hazardOUs substances; or exposure to any chemical substances, noises or vibrations to the extent the same arise from the condition of the premises or SF.I,LER'S ownership or use of the premises. c) The SELLER represents that no consent or approval is needed from any governmental agency for the transfer of the development fights from SF, I,I,ER to PURCHASER, and neither the execution of this agreement, nor the closing of title, will violate any Environmental Law. The SELLER shall also indemnify the PURCHASER and United States of America as to the following: Violations of any laws and regulations which are now or which may in the future become applicable and including, but not limited to the Resource Conservation and Recovel~ Act, as amended, 42 U.S.C. 6901, et seq., the Federal Water Pollution Control Act, as amended, 33 U.S.C. §1251, et seq., the Comprehensive Environmental Response, Compensation and Liability Act as amended, 42 U.S.C. 9601, et seq., the Toxic Substances Control Act, as amended, 15 U.S.C. 2601, et seq., the Federal Insecticide Fungicide and Rodenticide Act, as amended, 7 U.S.C. 136, et seq., and the Safe Drinking Water Act, as amended, 42 U.S.C. 300f, et seq. (2) judgments, claims, demands, penalties or fees assessed against the United States; (3) costs, expenses and damages incurred by the United States of America, or (4) the release or threatened release of any solid waste, hazardous waste, hazardous substance, pollutant contaminant, oil in any form or petroleum product into the environment. This covenant shall run with the land in perpetuity. The (1) Title report, (2) Environmental Site Assessment and (3) Survey shall constitute a Baseline Data Report, in order to evidence the present condition of the premises (including both natural and manmade features) so as to facilitate future monitoring and enforcement of the Development Rights. Copies of the listed documents shall remain on file with the PURCHASER and shall be made available to the SELLEtL This covenant shall run with the land in perpetuity. Exploration for, or development and extraction of minerals and hydrocarbons from the premises by any means is prohibited. This covenant shall nm with the land in perpetuity. Recreation consistent with the purposes of this easement, including protection of soils, agricultural production and open space, is permissible, activities that degrade or compact the soils or conflict negatively impact agricultural production and preservation of open space are prohibited. This covenant shall run with the land in perpetuity. The following covenants shall run with the land in perpetuity: 1) utilities - the installation of utilities on or across the conservation easement shall be prohibited except the installation of utilities shall be permitted for the use and enjoyment of the parcel only. Such utilities must be placed underground only and not negatively impact or degrade the soils, agricultural production or open space of the parcel. Approval for the installation of such utilities must be received by the Land Preservation Committee of the Town of Southold. 2) renovation, maintenance and repairs of existing structures are not deemed to be new construction and are permitted subject to the following: the renovation, maintenance and repairs permitted may not enlarge or change the l0 footprint or change the primary purpose of the existing building to a non- agricultural production use. 3) new construction (including but not limited t° fencing, paving and relocation of existing structures), erection, installation or placement of structures on the premises described herein is prohibited except that certain de minimus agricultural related structure(s) are permitted upon approval of the land preservation committee of the Town of Southotd based upon meeting the following criteria: the proposed de minimus structure shall not have an adverse impact on prime soils, open space preservation, is necessary for agricultural production and is othenvise consistent with the purposes of the conservation easement which purposes include protection of prime and unique soils, protection of open lands used in bona fide agricultural production and protection of oPen space. Any amendments to this Deed, shall be in writing and executed in recordable form by the SELLER and the PURCHASER. This covenant Shall run with the land in perpetuity THE following covenantS shall run with the land in perpetuity and shall be deemed applicable only if federal funds are in fact received by the PARTY OF THE SECOND PART for the premises: (i) Contingent Right in the United States of America: In the event that the PARTY OF THE SECOND PART fails to enforce any of the terms of this easement (or other interests in land), as determined in the sole discretion of the Secretary of the United States Department of Agriculture, the said Secretary of Agriculture and his or her successors and assigns shall have the right to enforce the terms of the easement through any and all authorities available under Federal or State law. In the event that the PARTY OF THE SECOND PART attempts to terminate, transfer, or otherwise divest itself of any rights, title, or interests of this easement (or other interests in land) or extinguish the conservation easement (or other interests in land) without the prior consent of the Secretary of the United States Department of'Agriculture and payment of consideration to the United States of America, then, at the option of such Secretary, all right, title, and interest in this easement (or other interests in land) shall become vested in the United States of America. Unless otherwise agreed to by ~he PARTY OF THE SECOND PART, United States of America Commodity Credit Corporation, the PARTY OF TIlE SECOND PART shall hold title to any conservation easement or interest in land. However, title may be held by the United States of America at the request of the Secretary of Agriculture upon mutual agreement of the PARTY OF THE SECOND PART, United States of America Commodity Credit Corporation. (iii) PARTY OF THE FIRST PART covenants to manage the property in accordance with a conservation plan that is developed utilizing the standards and specifications of the NRCS field office technical guide and 7 C.F.R., Part 12, and is approved by the Suffolk County Soil and Water Conservation District. After the DEVELOPMENT RIGHTS have been acquired by the PARTY OF THE SECOND PART, any amendments to this Deed of Development Rights shall be authorized in writing by the United States of America. THE following covenants shall run with the land in perpetuity and shall be deemed applicable, only if federal funds are in fact received by the PARTY OF THE SECOND PART for the premises: (i) After the DEVF, I,OPMENT RIGHTS have been acquired by the PARTY t2 OF THE SECOND PART, any amendments to this Deed of Development Rights shall be authorized in writing by the United States of America. AS set forth in Chapter 25 of the Town Code of the Town of Southold DEVELOPMENT RIGHTS acquired by the Town pursuant to the provisions of that chapter shall not thereafter be alienated, except upon the affirmative vote of a majority of the Town-Board after a public hearing and upon the approval of the electors of the Town voting on a proposition submitted at a special or biennial town election. No subsequent amendment of the provisions of this subsection shall alter the limitations imposed upon the alienation of development rights acquired by the Town prior to any such amendment. This covenant shall mn with the land in perpetuity. THE following covenants shall run with the land in perpetuity and shall be deemed applicable, only if United States funds are in fact received by the PARTY OF THE SECOND PART for the premises: 1) If this deed of development rights is ever extinguished, for any reason, then the Town and the United States and its agents are entitled compensation in an amount equal to 67.74% of the fair market value of the property at the time of condemnation, this percentage represents the value, at the time of purchase, of this deed of development rights in relation to fair market value of the fee and shall remain constant. The Town of Southold and the United States agree to share this compensation so as to reflect the ratio of dollars contributed by each party to the acquisition of the conservation easement. The contribution of the United States and Town to the purchase of this conservation easement/development fights deed is as follows: 50% and 50% respectively. The following covenants shall run with the land in perpetuity: Interpretation. "where state or local law is cited and incorporated by reference in this deed, such law shall be read into the document as if set forth in the deed itself and shall constitute a term thereof, the version of the state or local law in effect at the time of deed recordation shall govern the interpretation of those incorporated terms. Consequently, subsequent amendment or repeal of any incorporated law will have no effect on the interpretation of this deed." IN WITNESS WHEREOF, the party of the first part has duly executed this deed the day and year first written above. Sellers: Henry M. Rutkosld I-l~efen S. Rutkoski Purchaser: Town of Southold f/,~s[aua Y. H(~ton, Supervisor -- The Natural Resources Conservation Service, an agency of the United States Government, hereby accepts and approves the foregoing development fights/conservation easement deed, and the rights conveyed therein, on behalf of the United States of America. Marilyn Ca~sidy Steph~ens.on/_ Authorized Signatory for the NRCS 14 STATE OF FLORIDA ) )SS: COUNTY 0r On the 'ZTo day of April, 2003, before me personally appeared HENRY M. RUTKOSKI, personally known to me or provided to me on the basis of satisfactory evidence .tSz-be~the individual whose name is subscribed to the within instrument and ackno.~vl~dged tS me that he execmed the same and that by his signature on the acted, /¥.xecu~.ed...the. i~s, _t~: enk/ ~'" '~- ~--and~that~h individual made such appearance before /the u~rs~d~n t~~f ~st Palm Beach, :State of Florida / /' I \ ~ · "~,~.o~"' Commiss~on # DD201957 · · . )SS: On the '¢2~ day of April, 2003, before me personally appeared HELEN S. RUTKOSKI, personally known to me or provided to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and ac.kn~/w~e~j ~ to me that he executed the same and that by his signature on the i~ment, {he individual, or the person upon behalf of which the individual acted, ,~xecuted-~t~. ~'~ms~nsre~,~xand that such individual made such appearance before u]~ ~n~eq~ i(th~}c±ty of West Palm Beach, 8tare of Florida. / f t ) )SS: COUNTY OF SUFFOLK ) On the ~ day of ~ 2003, before me personally appeared JOSHUA Y. HORTON, personally known to me or provided to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity as Supervisor of the TOWN OF SOUTHOLD, and that by his signature on the instrument, the individual, or the municipal corporation upon behalf of which the individual acted, executed the instrument. Notary Public%~ C, omm~ssion ~.xptv~ STATE OF NEW YORK ) )SS: COUNTY OF ~J~0d/~Tgl~J ) On the '74% day of April, 2003, before me personally appeared MARILYN CASSIDY STEPHENSON, personally known to me or provided to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her capacity as a Representative of the NATURAL RESOURCES CONSERVATION SERVICE, and that by her signature on the instrumem, the individual, or the organization upon behalf of which the individual acted, executed the instrument. Notary Public 16 ISSUED BY COMMONWEALTH LAND TITLE INSL1RANCE COMPANY Commonwealth OWNER'S POLICY OF TITLE INSURANCE SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, COMMONWEALTH LAND TITLE INSURANCE COMPANY, a Pennsylvania corporation, herein called the Company~ insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lieu or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. IN WITNESS WHEREOF, COMMONWEALTH LAND TITLE INSURANCE COMPANY has caused it{ corporate name and seal to be hereunto affixed by its duly authorized officers, the Policy to become valid when countersigned by an authorized officer or agent of the Company. Attest: COMMONWEALTH LAND TITLE INSURANCE COMPANY 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 Iaws, 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 improve- ment 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 affect of any violation of these laws, ordinances or governmental regula- tions, 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 nf Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded iu the public records at Date of Policy, but not excluding from coverage any takihg 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) 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 aud 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 beeu sustained if the insured claimant had paid value for the estate 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: (a) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or Co) 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: (i) to timely record the instrument of transfer; or (ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. NM I PA10 ALTA Owner's Policy (10-17~92) Form 1190-1 Face Page ORIGINAL Valid Only If Schedules A and B and Cover Are Attached 'uo[lu1~!l!l al uoIlP.~![qo aa Kl!l[q*[[ Xue flulpn[a sluo~Xud aql UU~l Io~lo aapun pa~nsul oql al suo[lug!lqo s,XuudmoD ~oj pop[~md suoado o~l jo i*~l[a s~ XuudmoD ~1 qo[q~ pu~ lu~miud ~azNo~ln~ a~*a qa[~ luum[.Io poinsu[ ~sXaulolln 'slsoa Kug ql}~ aaqla~ol ia ssaI oql luum~*la pomsu~ oql, ql~ ~o :X~d iuam,(*d jo om~l al dn XuudmoD paxnsu~ o~1 iq poa~nau~ sasu*dxo laql*gol 'Ko[lad s[ql ~*pun lsu~u~ a~uu aql m 1o ~oj sa[li~d ~*qlo aa paJnsuI a~l uuql ~o~10 sa.laud 'uo}lqlOaUUO aq Huqs X3~lod *ql puu Ol uo[luflllqo ~o Xllllq?}l Kuw gulpnlau aql a~um ol uuqi ~o~lo '<O~lod pu~ itll}qg[l 11~ 'uolldo slql jo ~u.dtuo -u~j[qo s[ Xugd~oD o~1 qa}q~ puu oql al dn 'KuudmoD oql Xq Kq poa~nou~ sasuadxa puu soaj .sKauloll? ~opun *oumnsm jo luno~w oql jo · aoumnsul jo luaomV aql aA~q I[~qs ,<uudmoD ~ql 'XallOd ~S~IVlO ~1ll;S 3S1~3~10 'm~lO aql jo Xl~Hqg[l Xuu aluu}maal llg~S px[~l mo~j uo[lum~oju~ Xa~ssoo*u uo~lum~oju~ palsanb*~ Xlquuos.aa raj lcuqns al lu.~[UlO p*ansu} oql u[ Xn.sgoaou si 1} *XuudmoD oql sxoqlo al pasops}p oq lou II?qS uo[loaS pap~amd lu~m}gl3 poJnsu[ ~ql Xq 'a~.mup xo ssaI aql al u[m~ad Xlq.uos.a~ ~o Kpolsna *ql u~ ?pumom*m puu ~sp2oaa~ II? ,<doa pu~ 13*dsu~ ~ au~mgxa po~nsm oql ' KuudmoD oql jo *x~l~lu~soado~ j] '~*~l~n~ '*~u~up xo ssaI 0~1 al ~oU~ ~o oaojaq olup ~ ~u~xuaq ~o~loq~ 's~oaqo ~saa~pal 's~ooq pazNoqlng Xuu Xq paleufi}sap oq lu '~mXdoa puu uoBoodsu~ ~uo}luu~uxo oql jo aAjlmUasa~d*~ p~z~2oqln? l~mqns al p*a}nba~ aq XIq~uosuo~ ~ans ~u}x}nboi sJoll?~ 1o ~allutu ~o 'alnoasoad 'pu0Jop al uo~l~!lqo li~s XaHod o~1 ~apun pa~nsu~ ssat jo jomd p*x}nbo~ aql ap[amd pao[pnb~d s} XuedmoD aql Jl 'o~u~uP jo s[suq aql '*lq!ssod ltlalXO oql jo s~suq oql s~lnl[lsuoo qa}q~ XaHod ~o ~Oll9 aql ua ~oumqmnau* ~o uo[i 1o ssaI jo jooid o~L 'a~mup ~o iiu~s luum~¢la pa~nsu} oql JaU~ sXup oq l[~qs luu~[UlO paxnsu[ a~l Kq jo jooad ~ 'KuudmoD aql pap~o~d · soql jo ~ uo}l~S aopun p*~[nbo~ q~ns ~u}a}nb~ s~oll~m Jo 2~ll~m ~o 'alnaoso~d 'puajop al uorl~qqo Xo}Iod oql ~*pun po~nsu} a~l al p*~}nba~ ~1 qs~uJnj al p*~nsu} aql aql JI T~msm se ls~nalu~ ~o *l~lSo aa Ka.sso~ou oq K?m Auud~oD o~l Xuu u[ ([[) puu quomo[ll*s ~u[loojja ~o gmlno*smd 'sassoul[~ gum[mqo ~o uoubu Xu~ u} (~) p}u a[q~uosu.x s~KuudmoD a~l 1~ 'p~nsm · osodxnd s~ql ~oj p=msu} ~ql jo ~1 l[~od puu 'u[=~oql sNodd~ [1 ~p{xoxd ~o *lno~soad os al lq~x =ql '~u~p*aamd aa uo~lau Xu~ al KuudmoD aql soamba~ ~o sljm~od 'aap~o 'UO~la~os~p alas sl[ u~ *lq~a oql s*a~sa~ jo l~noa u Xq uo[lgu[~olop [uu~ oql 'Xo[lod s[ql jo suo~sJAoJd ~ p*sod~olu} aa ua}lo? u~ lqgnoxq 'ON ']OH_LNO0 ZOAO~ ap.~s~I ponu.~luoD suo!l~lnd!l~ pu~ suo.m, puoD ~u~dmoD oql JI '~a~I°d s~ql Jo uo[s~o~d ~u~ ~Am~ ~O ~l~I~qm[ a~auoa Kqo~aql lou [[uqs pu? ':*punaaaq oIqe~I oq lle~S 1[ lou ~o aoqlaq~ 'po~nsu} oql o; agumup xo ssoI aonpa~ ao lUOAOad ol ~o 'poansu} s~ 'lso~olu[ )o *lglSa oql Ol *11~1 aql qs[[qulsa ol olqux~sop ~o iigssaoou aq X~m uo[u~do sl~ m qo}q~ lou ~aqlo Xuu opol ao flu}poaooxd ao UO[lOU Kuu alnaosoJd p~e 51nljlsuj ol 'lsoo u~o sl~ I~ 'lq~]~ aql *Agq IlUqs XugdmoD aq~ (q) 'Xojlod pa~nsu} lou saall~m *flo[[u qorq~ uopou jo sasn*a aso~l jo asuajop oql m po~nsu~ aql Xq pa~anau$ s*suadx* ao slsoo 'so=j Xuu Kud lou II$~ Xuudmo~ aq& 'iasunoo ~1o Xue jo s~j ~ql K~d lou l[[~ puu ~oj o[qe~I aq [t*qs pue uo~lou jo s~sngo polels osoql ol su pa~nsu[ oql luosa~daa ol (osnea, alq~uosuaa ~oj loofqo ol pamsu[ oql jo lq~[~ ~ql ol laofqns) aoloqa Sl~ jo l=sunoo laolas ol lqg~ *~1 oAe~ li*qs XuudmoD aq& 'Xauod s}ql Xq lsu]u~ paxnsu~ ~ollum ~oqlo xo oaumqmnau* ~o ua~[ 'laaJ*p u ~u]~o[l? uo~lou jo sasn~a pol*ls osoql ol s~ LlUO mq 'pa~nsur su lsalolu~ zo olljl m~.IO ~ sllass? Kl~d p/[ql Ku* qo}~ u} uo}l~fl}lJl u~ paxnsu} au jo asuojap aql ~oj op~xoad lNqs L(~Iap Olq~UOS~O~un lno~l~ pu~ lsoa ~XtmdmoD ~ql 'suo~l~Ind[1s pu~ suo~l~puoD ~s~ql jo 9 u°~l°°S dO ~RQ '-SNOI~O~ dO NOI~RO3SO~d QN~ oq l[*qs Ku~d~oD *ql ssa[un Ka~[od s[ql ~opun pa~nsu~ aql oa!pn[o~d asea au u! INqs Ku~dmoD at;1 Kj[lou at oanH~J se uoql 'KuudmoD a~l al uoa~g oq !au [Iwqs *o~lou xdmo~d JI 'olquIa~Jumun jo anl~}A Kq o[qw!I oq Kuru Ku~dmoD aql qo}~ ~oj a~emup ~o ssaI asnua si qo~q~ lsa~alu~ ~o *[1~1 jo m~u~3 Kuu jo ~puno~oq p*~nsmue al amoa i~uqs ogpoi,~ou~ osu* u~ (~) '~oi*q (~)~ uo~laoS u~ ~llOj las su jo osuo u~ (0 gu~l[x~ u~ Klldmmd XuudmoD ~1 Kj[lou IlUqs pa~nsu~ Xq po~n>os ssoup~lq*pu[ u~ (~) ~o 'puuI *~1 u~ lso~olu[ JO *~UlSO oql s* guoI os X[uo ~o 'po~nsu~ a~l mmj ~se~a~nd * Kq uo~[~ X*uom *suq~and u Xq p*~n>os ssoup*lq*pu[ uu sploq ~o 'pu~I lsololu[ ~o *l~lS* u~ su~ula~ po~nsm aql su guo[ os XlUO po~nsu~ u~ KaHod jo al~G jo s~ ~moj m onu~luoa llnqs KoHod s~* jo o~m*~oa ~ONVZ~NOO ~V ~NV~R~NI ~O NO~VRNILNO~ mlqnd, 'o~Jo~o~ mm~ suo~snp~ ~ jo (~) (~)t ~o~W~ jo ~1~ ~ solnl~s o~ms ~pun p~s~qmso sp~o~o~ , sp~o~z ~lqnd,, ~l~Jnoas loq]o Jo 'poop lSnll 'lgnJ1 Jo po*p 'a~lJom :,.o~u~om,, (a) '~qod s[ql Xq po~nsm s~ pu~I oql ~oaj puu al · ~o~q~ al luol~o oql'l~m~l 1o Kj~pbm iNqs uN~,q ~u~qlou inq al~ls* 'lsolalu[ 'o[1~1 ' lqg}l xug lou 'v *inpoqas u~ al pos~ajox aa poqposap ~aa* *ql jo s*uH *~1 puo~oq ~l~odo~d Xu~ opnlou~ lou soap ,,puli,, oq~ '~l~do~d [uo~ olnl[lsuo* ~1 Xq qa~ ola~aql pax~u sluom*AoJd~! · ~1 jo uosea~ ~q p*~nsu[ u~ al palndm[ *q Xum ~a~q~ ~[lou oA[lamlsuoa lou '*~p*l~ou~ [unlae , u~ouH,, ~o .agp*i~ou~. (a) 'o~u~up xo ssaI ~u[m~io p~nsu~ uu :,,lu*m.~[a po~nsuL, (q) Io 'u[~ jo lx*u 'soA[leluosalda~ I*UOslod 's~oA]~lns 'saas~Aap 's~oq 'ol pal[mil lou mq '~u[pnpu~ ~s~qa~nd ~o~j poqs[n~u[ls{p ~u] jo uo~l~J~o ~q po~nsu~ pom*u *~1 jo 1s*1*lu} sql o] paoaans o~ 'paansu! ~muu aql lsu!~e p*~ aAUq plno~ Xu*dmoD aql sasuaj*p ~u~ ol loafqns 'pu~ 'V a[npa~oS u~ pomeu poJnsu[ a~l :,,p~nsu~. SNIOI~LV~IfldLLS (INIV .... MAY, 29,2003-,1:36PM 'CLTIC RfVERHEAD'---- N0.924 File No.: RHBO030193 SCHEDULE A LandAmerica Commonwealth Amount of znsurancet $528,299,1.0 Dete of Policy: Nay 29, 2003 1- Name of ]:nsured: THE TOWN OF SOUTHOLD Policy No.: RH8003019;3 The estate or interest in the land which is covered by this policy is: Development Rights Title to the estate or interest in the land is vested in; THE TOWN OF SOUTHOLD ~y deed made by HENRY RUTKOSK~ and HELEN RUTKOSK~ to the INSURED deted May 29~ 2003 and to be recorded in the Office of the Clerk/Register of SUFFOLK County. The land referred to in this policy is described on the annexed Schedule A - Description, Count:ersigned :_ ~ - ~____~{thc~riz~cer or Agent Fee Policy Insert .... MAY. 29,2003-,l:36PM,----'- CLTIC RIVERHEAD- NO, 924 P, 3 File No,: RH80030193 SCHEDULE B 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 the following: S, Rights of tenants or persons in possession, 2. ~jght of Way (to the Long Island Pail Road) recited in Dead recorded in Liber 5704. page 452, 3, Receipt and Release (Hap No, 36) filed by The County of Suffolk for the Widening of Middle Road Middle Roac~ Extension recorded in Liber 70$8 page $85, 4. Agricultural Assessment recorded in Libor 8830 page 4~.1_. Agrlcultura[ Assessment recorded in Libor 8995 page :[03. Agricultural Assessment recorded in Libor 9[87 page Z65, Agricultural Assessment recorded in Libor 9525 page :[:17. Agricultural Assessment recorded in Libor 9525 page Agricultural Assessment recorded in Libor 9750 page Agricultural AsSessment recorded in Libor 9750 page 550. Agricultural Assessment: r~corded in Liber 932:2 page 484. Agricultural Assessment recorded in Libor [1663 page :[25. Survey made by lohn C. Ehlers, Land Surveyor last dot:ed t2/0~,/02 covering premises and more shows subject premises as vacant land; a)roads or trails on or along easterly record lines; b) Hedge encroaches an undet:ermined distance North of the southerly record tine, No other variations or encroachments. Subject to possible easement right of others than the insured in~ to and over the roads or trails as shown on the survey used herein. 2002/03 2'a half Town and School taxes. Fee Policy Inser~ File No.: RH80030193 SCHEDULE A - DESCRTPTTON TAX LOT 003.000 ALL that certain plot, piece of parcel of land situate lying and being at Mattituck, in the Town of Southold, County of Suffolk and State of New York, bounded and described as follows: BEGTNNING at a point on the southerly side of Hiddle Road (County Road 48) where same is intersected by the easterly side of land now or formerly of George Ivliaris and Sofia Miaris; RUNNING THENCE along the southerly side of Middle Road (County Rd 48) the following two (2) courses and distances: 1. North 14 degrees 23 minutes 13 seconds East, 257.30 feet; 2. Easterly along the arc of a curve bearing to the right having a radius of :[909.36 feet a distance of :[57.03 feet to land now or formerly of Carucci; Casino RUNNING THENCE along said lands South 36 degrees 29 minutes 49 seconds East, 637.18 feet to land now or formerly of LTRR; RUNNING THENCE along said lands South 46 degrees 14 minutes 2:[ seconds West, 332.50 feet to land now or formerly of Miaris first above mentioned; RUNNING THENCE along said lands North 35 degrees 53 minutes 50 seconds West, 422.96 feet to the southerly side of Middle Road (County Rd 48) at the point or place of BEGINNING. Fee Policy Insert Policy/File No: 80030Z93 ALI. that certain plot, piece or parcel of land situate lying and being at IVlattJtuck, in the Town of Southold, County of Suffolk and State of New York, bounded and described as follows: BEGTNNZNG at the southwesterly corner of the premises to be described, said point being distant North 26 degrees 00 minutes 00 seconds West 417.24 feet as measured along the easterly line of land now or formerly of Barney Sidor from the northerly side of Main Rd (State Rte 25); RUNNZNG THENCE along land now or formerly of Barney Sidor North 26 degrees 00 minutes 00 seconds West, 26.79 feet; RUNNZNG THENCE still along said land and along land now or formerly of Sidor and the Town of Southold North 31 degrees 15 minutes 40 seconds West, 105.28 feet; RUNNTNG THENCE still along land now or formerly of Sidor and the Town of Southold the following two (2) courses and distances: :[. North 34 degrees 57 minutes 40 seconds West, 952.60 feet; 2. North 35 degrees 29 minutes 30 seconds West, 1299.37 feet to land now or formerly of the LIRR; RUNNZNG THENCE along said lands North 46 degrees 14 minutes 21 seconds East, 335.31 feet to land now or formerly of Agnes B. Graboski; RUNNZNG THENCE along said lands the following two (2) courses and distances: :1.. South 36 degrees 09 minutes 45 seconds East, 2672.93 feet; 2. South 34 degrees 24 minutes 53 seconds East, 199.04 feet to land now or formerly of Edward F. Rutkoski; RUNNZNG THENCE along said lands the following three (3) courses and distances: South 74 degrees 04 minutes 37 seconds West, 114.38 feet; 2. South 21 degrees 27 minutes 33 seconds East, 17.55 feet; 3. South 76 degrees 45 minutes 31 seconds West, 120.00 feet to land now or formerly of Henry Rutkoski; RUNNING THENCE along said lands North 21 degrees 27 minutes 33 seconds West, 4.29 feet; RUNNING THENCE North 21 degrees 27 minutes 33 seconds West, 319.88 feet; RUNNING THENCE South 68 degrees 32 minutes 27 seconds West, 243.15 feet to the point or place of BEGINNZNG. ALTA Owner's Policy Date Printed l'qay 22, 2003 Schedule A - Description La adAs e ica Commonwealth File No.: RH80030193 STANDARD NEW YORK ENDORSEMENT (OWNER'S POLZCY) ATTACHED TO AND ~4ADE A PART OF POLICY NO, RH80030193 ISSUED BY COMMONWEALTH LAND TZTLE/NSURANCE COMPANY The following is added to the insuring provisions on the face page of this policy: "5. Any statutory lien for services, labor or materials furnished prior to the date hereof, and which has now gained or which may hereafter gain priority over the estate or interest of the insured as shown in Schedule A of this policy." The following is added to Paragraph 7 of the Conditions and Stipulations of this policy: "(d) If the recording date of the instruments creating the insured interest is later than the policy date, such policy shall also cover intervening liens or encumbrances, except real estate taxes, assessments, water charges and sewer rents." Nothing herein contained shall be construed as extending or changing the effective date of the policy unless otherwise expressly stated. This endorsement, when countersigned below by a validating signatory, is made a part of the policy and is subject to the Exclusions from Coverage, Schedules, Conditions and Stipulations therein, except as modified by the provisions hereof. Dated: May 29, 2003 Issued at: Commonwealth Land Title Insurance Company 185 Old Country Road, PO Box 419 Suite 2 Riverhead, NY 11901 /~ Authorized Officer Standard New York Endorsement (9/1/93) For Use With ALTA Owner's Policy (10/17/92) TQ10037NY {07/00) ' " CONDITIONS AND STIPULATIONS ;' ' (Continued) 7. DETERMINATION, EXTENT OF L~ABtLITY AND COINSURANCE. This policy =,~ a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suEsred less or damage by reason of matters insured against by this policy end only to the extent herein described. (a) The liability of +,he Company under this policy shall not exceed the least (i) the Amount of insurance stated in Scheduls A; or, (ii) the difference between the value of the insured estate or interest insured and the value of the insured estate or interest subject to the defect, lien encumbrance insured against by this policy. (b) In the event the Amount of Insurance stated in Schedule A at the Date ~z-Policy is less than 80 percent of the value of the insured estate or interest or the Full consideration paid for the land, whichever is less~ or if subsequent to the Date of Policy an improvement is erected on the land whfch increases the value of the insured estate or interest by at least 20 percent over the Amount of Insurance stated in Schedule A, then this Policy is subject to the following: (i) where no subsequent improvement has been made, as to any padia[ loss, the Company shall only pay the loss pro rata in the proportion that the amount of insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy; or (ii) where a subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of insurance stated in Schedule A bears to the sum of the Amount gl Insurance stated in Schedule A and the amount expended for the imerovement, The provisions of this paragraph shall not apply to costs, attorneys' fees and exoenses for which the Company is liable under this policy, and shall only apply to that pot[ion of any loss which exceeds, in the aggregate, 10 pemant of the Amounl of Insurance stated in Schedule A. (c) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. APPORTIONMENT. if the land described in Schedule A consists of two or more oaroe[s which are not used as a single site. and a loss is established affecting one or more of the parcels but not all, the loss shall be computed and settled on a pro rata basis as if the amount of insurance under this policy was divided pro raze as to the value on Date of Policy of eann separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, unless a liability or value nas otherwise been.agreed uaon as ra eacn parcel bythe Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to this policy. 9. LIMITATION OF LIABILITY. (a) if the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom il shall have full'y performed its obligations with reecect to that matter and shatl be liable for any loss or damage caused thereby. (b) n the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title as insured. (c) The Company shall not be liable for ~oss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF iNSURANCE; REDUCTION OR TERMINATION OF LIABILITY. Ail payments under this policy, except payments made for costs, attorneys' fees anc expenses, shall reduce the amount of the insurance pro tanto. 11. LIABILITY NONCUMULATIVE. 1 is expressly understood that the amount of insurance under this policy sha~l be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred To m Schedule A. and the amount so paid shall be deemed a payment under this policy to the r~sured owner. 12. PAYMENT OF LOSS. (a) No payment shall be made withoul producing this policy for endorsement of the paymen! unless the policy has been lost or destroyed, which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has seen definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 uays thereafter. 13. SUBROGATION UPON PAYMENT OR SE"J-FLEMENT. (a) The Company's Right of Subrogation. Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to ali rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the Ioss of the insured claimant, the Company shall be subrogated to these rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss. If loss should result from any act of the insured claimant, as stated above, that act shall not void this policy, but the Company, in that event, sha~l be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (b) The Company's Rights Against Non-insured Obligors. The Company's right of subrogation against non-insured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. 14. ARBITRATION. Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title t_ns._urance Arbitration Ru~es of the Amedcan Arbitration Association. Arbitrabl~-~-~matters may include, but are not limited to, any controversy or claim between the Corn .pany 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. All arbitrable matters when the Amount of insurance is $1,000,000 or [ess shall be arbitrated at the option of either the Company or the insured. All arbitrable matters wheal the Amount of nsurance is in excess of $I,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option df the insured, the Rules in effect at Date of Policy shall be binding ucon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing par~y. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The ]aw of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Ru~es. A copy of the Rules may be obtained from the Company upon request. 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (a) This policy together with all endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. in interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 16. SEVERABILITY. In the event any provision of the policy is held invalid or unenforceable under applicable ~aw, the policy shall be deemed not to include that provision and al~ other provisions shall remain in full rome and effect. 17. NOTICES WHERE SENT. All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and sha~l be addressed to: Consumer Affairs Department, P.O. Box 27567, Richmond, Virginia 23261-7567. NM 1 PA 10 ALTA Owner's Policy (10/17/92) Form 1190-3 Cover Page ORIGINAL Valid only if Face Page and Schedules A and B are attached CLOSING STATEMENT HENRY M. RUTKOSKI and HELEN S. RUTKOSKI to TOWN OF SOUTHOLD Development Rights Easement SCTM #1000-108-2-3 and #1000-115-2-p/o 10 25.1571 acres @ $21,000/acre sis Rt 48 & n/s Rt 25, Mattituck, New York Purchase Price: $ 528,299.10 Payable to Henry M. & Helen S. Rutkoski Check #71868 Expenses of Closing: Appraisal Payable to Patrick Given, SRPA Check #65061 $ 1,900.00 Environmental Report Payable to Nelson, Pope & Voorhis Check #71427 $ 1,500.00 Survey Payable to John C. Ehlers Land Surveyor Check #69894 $ 3,250.00 Title Report Payable to LandAmerica*Commonwealth Check #71867 Title policy $ 2,633.00 Deed recording $ 198.00 $ 2,831.00 Title Closer Payable to Karen Hagen, Esq. Check #71866 $ 50.00 Closing held on Thursday, May 29, 2003, at 2:00 p.m. Southold Town Hall, 53095 Route 25, Southoid, New York Those present at Closing: Henry M. Rutkoski Helen S. Rutkoski Richard F. Lark, Esq. Joshua Y. Horton Gregory F. Yakaboski, Esq. Karen Hagen, Esq. Melissa Spiro John Sepenoski Ray Huntington Bill Edwards Seller Seller Attorney for Seller Town Supervisor Attorney for Town of Southold Title Company Closer Land Preservation Coordinator Land Preservation Committee Land Preservation Committee Land Preservation Committee