HomeMy WebLinkAbout1996-075J \NPDOCS\ORD\ABNER ORD
ORDINANCE NO. q6 -0,75
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A CONTRACT
PROVIDING FOR THE EXCHANGE OF CERTAIN REAL ESTATE ON THE EAST SIDE
OF MAYHILL ROAD OWNED BY THE CITY OF DENTON; FOR PROPERTY NEXT TO
THE CITY OF DENTON LANDFILL OWNED BY ABNER, INC , AND PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, the City of Denton, in accordance with the
requirements of TEX. LOC. GOV'T CODE ANN CHAPTER 272 001 (VERNON
1988), has advertised for the exchange of a certain tract of real
property located on the east side of Mayhill Road and described as
10 acres of land 3,000 ft. south of FM 426 (McKinney Street)
WHEREAS, the City Manager having recommended to the City
Council that the said exchange of land be approved; and
WHEREAS, in accordance with Sec. 12.04 of the City Chapter, the
Council hereby finds that the property described above is not
essential to continued effective utility service; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I. That the City Council of the City of Denton, Texas
approves the contract between the City of Denton and Abner Inc.,l
providing for the exchange of real property described in the
contract, a copy of which is attached hereto as Exhibit "A" and
incorporated by reference herein.
SECTION II. The City Council hereby authorized the City
Manager to execute any and all documents necessary to consummate
the exchange of real property in accordance with the contract, and
the expenditure of funds incidental to said exchange
SECTION III. That this ordinance shall become effective
immediately upon its passage and approval.
PASSED AND APPROVED this the 42 day of 4& _,
1996
EXCHANGE CONTRACT
STATE OF TEXAS
COUNTY OF DENTON
THIS EXCHANGE CONTRACT (hereinafter ,Contract")
is made as of
by and between
,Cont
(hereinaftr referred to as "Corporation"11
) and CITY OF DENTON,
e
TEXAS, a home rule municipality, of Denton, Denton County, Texas,
(hereinafter referred to as "City"), upon the terms and conditions
set forth herein
EXCHANGE AGREEMENT
WHEREAS, Corporation is the owner of that certain tract of land
situated in Denton County, Texas, and being more particularly
described in Exhibit A ("Tract A") attached hereto and incorporated
herein for all purposes, and
WHEREAS, City owns that certain tract of land situated in
Denton ticularl
Exhibit Bou( TractTexas
) attached being
hereto andrincorporat d herdescribed
n for
all purposes, and
WHEREAS, Corporation wishes to acquire Tract B and City wishes
to acquire Tract A, and
WHEREAS, City is willing to convey Tract B upon the terms and
conditions contained herein, and
WHEREAS, Corporation is willing and able to convey Tract A upon
the terms and conditions contained herein,
NOW, THEREFORE, for and in consideration of the mutual
agreements contained herein, Corporation and City hereby agree as
follows
I Exchange Agreement
Subject to the terms and conditions contained herein,
Corporation agrees to convey Tract A to City, and City
agrees to convey Tract B to Corporation
2 No Creation of Additional Encumbrg^gPs by Affirmative
Actions
A Corporation agrees that neither Corporation or its
predecessors in title to Tract A will not, through affirma-
tive actions taken after the date hereof and before the
closing date create any additional encumbrance affecting
Tract A without the express prior written consent of City
City agrees that City will not withhold consent to a
proposed additional encumbrance affecting Tract A if such
proposed additional encumbrance has no material, adverse
effect upon the value, development, or use of Tract A If
s
Corporation through affirmative actions taken after the
date hereof and before the closing date does create any
additional encumbrance affecting Tract A without the
express prior written consent of City, Corporation shall be
required to remove any such additional encumbrance at
Corporation's sole cost and expense prior to or at the
Closing
B City agrees that City will not through affirmative
actions taken after the date hereof and before the closing
date create any additional encumbrance affecting Tract B
without the express prior written consent of Corporation
Corporation agrees that Corporation will not withhold
consent to a proposed additional encumbrance affecting
Tract B if such proposed additional encumbrance has no
material, adverse effect upon value, development, or use of
Tract B If City through affirmative actions taken after
the date hereof and before the closing date does create any
additional encumbrance affecting Tract B without the
express prior written consent of Corporation, City shall be
required to remove any such additional encumbrance at
City,s sole cost and expense prior to or at the time of
Closing Platting of Tract B for the purpose of allowing
a tower to be placed upon Tract B shall not be deemed an
encumbrance for purposes of this provision
3 Closina Date
The closing shall be held at the office of on off e
, or at such time, date, and place as City
and Corporation may mutually agree upon (which date is
herein referred to as the "closing date")
4 Delivery of Deeds Easement Agreement and Possession
A At the Closing, Corporation shall (1) execute,
acknowledge and deliver to City a Special Warranty Deed
conveying Tract A to City (the "Corporation Deed") and any
and all other documents necessary to convey tract A to
City, (ii) Sub]ect to the provisions of Paragraph 10,
deliver possession of Tract A to City, and (111) supply
City a Commitment identical to those contained in the
Commitment issued
B At the Closing, City shall (1) execute, acknowledge,
and deliver to Corporation a Special Warranty Deed
PAGE 2
conveying Tract B to Corporation (the "City Deed"), (il)
deliver possession of Tract B to Corporation and (ill) pay
Corporation $ 413,850.00 see paragraph 29 herein.
5 property Tax Liability
Corporation hereby Agrees that Corporation will pay all
1995 property taxes levied or assessed against Tract A
6 Closing Costs
A Corporation will pay the filing fees for the City Deed,
and City will pay the filing fees for the Corporation Deed
B If Corporation desires to obtain a title insurance
policy covering Tract B, Corporation shall pay the premium
therefor If City wishes to obtain a title insurance
policy covering Tract A, City shall pay the premium
therefor If only one party desires such title insurance,
that party may select the title company If both parties
desire title insurance, then it is agreed that the title
insurance company shall be
C If there are any closing costs not allocated to
Corporation or City herein, such closing costs shall be
paid by the party incurring same
7 Inspection of ProDerty
A For a period of ten (10) days from the date hereof
Corporation agrees to allow City to enter upon Tract A for
the purpose of inspecting the same, and for the purpose of
conducting such environmental tests, feasibility studies,
and other tests or studies the City deems advisable if
City, in City's sole discretion, is not satisfied with such
inspections, tests or studies, City may terminate this
Contract by giving written notice of termination to
Corporation within twenty (20) days from the date hereof
In the event City terminates this Contract pursuant to this
paragraph 7, City agrees to restore Tract A substantially
to its condition prior to City's entry
B For a period of ten (10) days from the date hereof,
City agrees to allow Corporation to enter upon Tract B for
the purpose of inspecting the same If Corporation, in
Corporation's sole discretion, is not satisfied with such
inspections, Corporation may terminate this Contract by
giving written notice of termination to City within twenty
(20) days from the date hereof In the event Corporation
terminates this Contract pursuant to this paragraph 7,
Corporation agrees to restore Tract A substantially to its
condition prior to Corporation's entry
PAGE 3
8. REPRESENTATIONS
A. The Corporation represents that it and its officers do not
have any knowledge of any toxic or hazardous wastes or materials
on or within Tract A nor does the Corporation and any of its
officers have any knowledge of toxic or hazardous wastes or
materials as same are defined by the Resource Conservation and
Recovery Act (RCRA), as amended, and the Comprehensive
Environmental Response Compensation and Liability Act (CERCLA),
as amended on or within Tract A.
B. The City of Denton represents that the City and its
representatives do not have any knowledge of any toxic or
hazardous wastes or materials on or within Tract S nor does the
City and its representatives have any knowledge any toxic or
hazardous wastes or materials as same are defined by the Resource
Conservation and Recovery Act (RCRA), as amended, and the
rnnnrehensive Environmental Response Compensation and Liability
PAGE 4
9. Authority
A. Four (4) days prior to closing, City agrees to furnish
to Corporation, and if necessary, Corporation's Title
Company, written evidence of the authority of the party(s)
executing this Contract on behalf of the City. City agrees
to furnish to Corporation, and if necessary, Corporation's
Title Company, at or prior to the Closing written evidence
of the authority of the party(s) executing the City Deed on
behalf of the City
B Four (4) days prior to closing, Corporation agrees to
furnish to City, and if necessary, City's Title Company,
written evidence of the authority of the party(s) executing
this Contract on behalf of Corporation. Corporation agrees
PAGE 5
to furnish to City, and if necessary, City's Title Company,
evidence of the authori-
at or prior to the Closing written
ty of the party(s) executing the Corporation Deed on behalf
Corporation
10 survival o Covenants
Anof agr- representat ion,
parties, sell arw1 as any covenants,
eementsofrights and
benefits of the parties, pertaining to a period of time
following the closing of the transactions contemplated
hereby shall survive the closing and shall not be merged
therein
11 No Commissions
Corporation and City warrant and represent to each other
that no real estate brokers', agents', or finders' fees or
commissions are due arising in connection with the exchange
of Tract A for Tract B, from the execution of this Contract
or from the consummation of the transactions contemplated
herein, and each party hereto hereby agrees to indemnify
and hold the other party harmless from claims made by any
person for any such fees, commissions or like compensation
claiming to have dealt with the party so indemnifying the
other
12 Remedies
if Corporation breaches any of the agreements of corpora-
tion contained in this Contract and such breach is not
cured within fifteen (15) days after City has delivered
noticewritten
election may ei her t rminat orthis tContact t oa t
rseek all
other remedies set forth in this Contract or available at
law, in equity, or by statute, including specific perfor-
mance, provided, however, if Corporation is unable to
deliver title to Tract A free and clear of any encumbranc-
es, City's only remedy shall be termination of this
Contract unless the encumbrance in question is an encum-
brance created the date hereof and before the closing date,
by the affirmative actions of Corporation to which City did
writing,not consent in
t City shall b
entitl d to exerc seall lwhich ofthe remedies nset forth herein -
above
If City breaches any of the agreements of City contained in
this Contract and such breach is not cured within fifteen
(15) days after Corporation has delivered written notice
thereof to City, Corporation at Corporation's election may
either terminate this Contract, or seek all remedies set
forth in this Contract or available at law, in equity hoover, by
statute, including specific performance, provided,
PAGE 6
if City is unable to deliver title to Tract B free and
clear of any encumbrances, Corporation's only remedy shall
be termination of this Contract unless the encumbrance in
question is an encumbrance created after the date hereof by
the affirmative actions of City to which Corporation did
not consent in writing, in which event Corporation shall be
entitled to exercise all of the remedies set forth herein -
above
13 Attorney' s Fees
Should either party to this Contract commence legal pro-
ceedings against the other to enforce the terms and pro-
visions of this Contract, the party losing in such legal
proceedings shall pay the attorney's fees and expenses of
the party prevailing in such legal proceedings
14 Time of EBBAnSMe
Time is important to both Corporation and City in the
performance of this Contract and they have agreed that
strict compliance is required as to any date set forth
herein if the final date of any period which is set forth
in any term or provision of this Contract falls upon a
Saturday, Sunday, or legal holiday under the laws of the
United States or the State of Texas, then, and in such
event, the time of such period shall be extended to the
next day which is not a Saturday, Sunday, or legal holiday
15 Notices
Any
shallnotice ebelred or desired to deemed to be delivered
ven (1) toneither
daterof
delivery, if hand delivered, (11) one (1) day after
sending, if sent by overnight courier, or (lii) if sent by
mail, the day the same is posted in a U S mall receptacle,
postage prepaid, certified mall, return receipt requested,
to the address of the applicable party set out above such
party's signature herelnbelow Either party hereto may
change such party's address for notice, but until written
notice of such change of address is actually received by
the other party, the last address of such party designated
for notice shall remain such party's address for notice
16 aPvPrabillty
If any term or provision of this Contract is held to be
illegal, invalid, or unenforceable, the legality, validity,
and enforceability of the remaining terms and provisions of
this Contract shall not be affected thereby, and in lieu of
each such illegal, invalid, or unenforceable term or pro-
vision there shall be added automatically to this Contract
a legal, valid, and enforceable term or provision as
PAGE 7
similar as possible to the term or provision declared
illegal, invalid, or enforceable
17 Waiver
Either Purchaser or City shall have the right to waive any
requirement contained in this Contract, which is intended
for the waiving party's benefit, but, except as otherwise
specifically provided herein, such waiver shall be effect-
ive only if in writing executed by the party for whose
benefit such requirement is intended
18 cumin tive R1ahts and Remedies
Except as specifically limited herein, no right or remedy
set forth in this Contract is intended to be exclusive of
any other right or remedy set forth in this Contract or by
law provided, but each shall be cumulative and in addition
to every other right or remedy set forth in this Contract
or now or hereafter existing at law or in equity
by
statue
19 Captions
The captions used in connection with the articles and
sections of this or convenience only and
shall not be deemed otoract are f expand orlimit the meaning of the
language of this Contract
20 Use of Languaae
Words of any gender used in this Contract shall be held and
construed to include any other gender, and words in the
singular shall be held to include the plural, unless the
context otherwise requires
21 F hih s
All exhibits, attachments, annexed instruments, and addenda
referred to herein shall be considered a part hereof for
all purposes with the same force and effect as If copied
verbatim wherever reference is made to same
22 No resentat+ons or Wa =A_n1L=
Except for the general warranty of title contained in the
City Deed and representations in paragraph eight (8) above,
Corporation hereby acknowledges that City has not made any
representations or warranties to Corporation with respect
to the
Tract B for any intended use,
condition suitability
bTract f B(including soil and sub -soil condhe
tions), the appreciation or income potential of Tract B,
and access to Tract B.
PAGE 8
This Contract embodies the entire agreement between
Corporation and City with respect to the subject matter
hereof and supersedes all prior agreements whether written
or oral.
24. Amendment.
Except as otherwise specifically provided herein, this
bynanact agrment in wrnot be iting executed byoboth Coup rationexcept
d
City.
25. 4nd;na Effect.
Except as otherwise provided herein, this contract shall be
binding upon and inure to the benefit of Corporation and
city and their respective successors and assigns
26. CITY WARRANTS
City warrants that bast B is zoned as such to allow the corporation to erect 456 feet
radio communications To ,the i further warrants that tract B has access to all
utilities 0-4e a A&I Mk W-4e i9e4 '°6�-�4.,, Es�u1.✓ (3 T teE-
27 PLATTING TRACT B.
The City agrees to survey and plat tract B and record the plat in the Real Property
Records prior to closing.
28 INSPF.(,'rm OF TITLE.
Both party shall have
of restrictions easements, and copis from the receipt
of
commitment, all Schedule "B"
�
exceptions (on title commitment) to review said document If either party is not
satisfied with said exceptions, either party may terminate this contract by given notice
to terminate within the ten (10) day period
29. ESCROW AGENT
The monies payable to the corporation under provision 4 b in of the contract shall
be paid to the Corporation's escrow agent as designated by the Corporation
30 LEASE
The City agrees to lease Tract B to the Corporation from the date of the exchange
until December 31, 1998 at the rate of $50.00 per year
PAGE 9
EgECUTED by Corporation and City on the date first referenced
above
CORPORATION CITY
CITY OF DENTON
Address Address 215 E McKinney
Denton, Texas 76201
BY `
BY R K SVEHLA, CTI G CITY MANAGER
PRESIDENT
ATTEST*
JENNIFER WALTERS,
m
SECRETARY
PAGE 10
fermi;le:3r1i7V
Being a tract of land situated in the G Walker Survey Abstract No. 1330 Denton
County, Texas and being a part of the tract described in the Deed from Gary Hancock to
Roger C Sullivan and Robert H Heiser recorded in Volume 970, Page BB of the Deed
Records, Denton County, Texas; the subject tract being more particularly described as
follows
BEGINNING for the Southwest corner of the tract being described herein, at an 112 inch
iron rod set in Edwards Road in the occupied South line of the Sullivan and Heiser
tract South 88 degrees 29 minutes 00 seconds East a distance of 707.75 feet from the
apparent Southwest Corner thereof and also being in North line of Allan Estates Mobile
Home Park as shown by the Plat thereof recorded in Cabinet C, Page 383 of the Plat
Records of Denton County, Texas,
THENCE North 01 degrees 31 minutes 00 seconds East passing at 13.0 feet a 1/2 inch
iron rod set under a gate in a fence along the North side of Edwards Road and
continuing, in all, a total distance of 660.00 feet to a V 2 inch iron rod set for the
Northwest corner of the herein described tract;
THENCE South 88 degrees 29 minutes 00 seconds East parallel with the South line of the
Sullivan and Heiser tract a distance of 66o.00 feet to a 112 inch iron rod set for the
Northeast corner of the herein described tract;
THENCE South 01 degrees 31 minutes 00 seconds West a distance of 660.00 feet to a 1/2
inch iron rod set for the Southeast corner of the herein described tract in the South
line of the Sullivan and Heiser tract in the remains of an old fence line about 12
feet South of a standing fence;
THENCE North 88 degrees 29 minutes 00 seconds West with the South line of the Sullivan
and Heiser tract along Edwards Road part of the way a distance of 660.00 feet to the
PLACE OF BEGINNING and enclosing 10 00 acres of land.
EXHIBIT "B"
(10 Acre Tract)
ALL that certain lot, tract or parcel of land lying and being situated In the
City and County of Denton, State of Texas, in the Gideon Walker Survey,
Abstract 1330 and being part of a 84.8193 acre tract conveyed from D.J.
Anderson to the eed recorded in Volume 2431, Page 843 of
the ReaProperty Rtecords of Denton ncounty, Texas and being more particularly
icularly
described as follows:
COMMENCING at the most northerly northwest corner of said 84.8193 acre tract,
said point lying in Mayhill Road and on the west line of said Gideon Walker
Survey;
THENCE South 010 31' 31" West along the west line of said survey a distance
of 131.96 feet to a point for corner;
THENCE South 870 52' 38" East a distance of 132.74 feet to the POINT OF
BEGINNING, said point also being the beginning of a curve to the right whose
radius point bears South 020 071 22" West a distance of 288.38 feet and has
a central angle of 350 23' 44";
THENCe of
.15 feet to a
poinntEfor corner, a said pointsbeing the beginning of as c8
southeastly alonaid curve an are curve to the left hose
radius point bears North 370 311 06" East a distance of 337.33 feet and has
a central angle of 350 301 27";
THENCE southeasterly along said curve an arc distance of 209.05 feet to a
point for corner;
THENCE South 870 591 21" East a distance of 284.43 feet to a point for
corner;
THENCE South a distance of 195.01 feet to a point for corner;
THENCE South 200 00' 00" West a distance of 528.61 feet to a point for
corner;
THENCE North 870 37' 00" West a distance of 500 feet to a point for corner;
THENCE North 000 38, 22" East a distance of 15.26 feet to a point for corner;
THENCE North 790 04' 24" West a distance of 1.18 feet to a point for corner;
THENCE North 040 001 52" East a cistance of 384.83 feet to a point for
corner;
THENCE South 830 50' 05" East a distance of 22.08 feet to a point for corner;
THENCE North 040 131 40" East a distance of 45 feet to a point for corner;
THENCE North 880 39' 38" West a distance of 30.52 to a point for corner;
THENCE North 020 37 f 32" East a distance of 367.74 feet to the POINT OF
BEGINNING and containing 10 acres of land.
1/02/96
AEE00632
DATE APRIL 2, 1996
CITY COI NCIL REPORT
TO Mayor and Members of the City Council
FROM Rick Svehla, Acting City Manager
SUBJECT BID # 1872 - EXCHANGE OF LAND
RECOMMENDATION. We recommend this bid be awarded to the sole bidder, Abner Inc, as
proposed per the attached Terms of Land Exchange
SUMMARY. This exchange of property and other consideration is required for the continued
expansion of the City of Denton Landfill The 10 acres acquired by the City from Abner currently
contains a large microwave communications tower Abner Inc will continue to utilize this tower
antenna until December of 1998 at which time the tower use will be discontinued
Acquisition of this land is critical to the current designs of the landfill expansion program
Planning and Zoning Commission recommends approval
BACKGROUND, Tabulation Sheet, Terms of Land Exchange, Site Map
PROGRAMS, DEPARTMENTS OR AGROUPS- AFFECTED— City of Denton Landfill
Development, Denton Municipal Utility
FISCAL IMPACT Funds for this land transaction will come from 1995-1996 Bond Funds
Account #632-024-LAND-9001
Re ectfull submitted
jf
Rick Svehla
Acting City Manager
Approved
Name Tom D Shaw, C P M
Title Purchasing Agent
723 AGENDA
pco
Z 0)
W
TOWER SITE ACQUISITION
PROPERTY EXCHANGE
0 10 acre property exchange
0 Acreage exchange with Abner, Inc (Tower Owner)
0 New 10 acre site on Wastewater Treatment Property
CONDITIONS OF THE
o Tower price $413,850
o Purchase price paid to Abner, Inc 's escrow agent
o Abner agrees to remove of all customers by December 31, 1998
o City agrees to lease existing tower location for $50 00/year
o City warrants property zoned for tower use
o City provides utilities (electric)
o Responsibility for environmental damages determine by common law
o City responsible to plat property prior to closing (m process)
FUZ C MPSIMSCU MMAMCRAWFORD
DENTEX TITLE COMPANY
300 N. ELM, STE. 101
DENTON, TEXAS 76201
817-566-0282
FAX 817-566-6445
City of Denton
221 N Elm Street
Denton, TX 76201
RE G F # 96-1332S
POLICY # 428776
PROPERTY 10 0 acres in Gideon
Denton County
Dear Madam or Sir
Walker Survey, Abstract 1330
Enclosed herewith please find your Owner Policy of Title Insurance
on the above referenced transaction
Your original Warranty Deed was filed with the County Clerk of
Denton County, Texas It will be returned to you by the County
Clerk
If you require anything further, please do not hesitate to call
Thank you for selecting Dentex Title Company to assist you with
your title insurance needs It has been our pleasure to do
business with you
Sincerely,
& —'�p
D'Nita oah
DENTEX TITLE COMPANY
R-03
1000: 3830. 00
Property Cat& CI
County Code: 121
OWNER POLICY OF TITLE INSURANCE
GF No.. 96-13325
Policy No.: 428776
Amount of Insurance: $533,850.00
Premium $3,830.00
Date of Policy: May 17, 1996 at 3: 40 P.M.
1. Name of Insured:
CITY OF DENTON, TEXAS
SCHEDULE A
Issued with Policy No.
2. The estate or interest in the land that is covered by this policy is: Fee Simple
3. Title to the estate or interest in the land is insured as vested in
CITY OF DENTON, TEXAS
4. The land referred to in this policy is described as follows:
BEING ALL THAT CERTAIN 10.0 ACRE, MORE OR LESS, TRACT OF LAND IN THE GIDEON WALKER
SURVEY, ABSTRACT NUMBER 1330, DENTON COUNTY, TEXAS AND BEING MORE PARTICULARLY
DESCRIBED IN EXHIBIT "A", ATTACHED HERETO AND MADE A PART HEREOF.
Alamo Title Insurance of Texas
Dentex Title Company
By
Authorized Countersignature
FORM T-1: Owner Policy -Schedule A Effective January 1, 1993
i
EXIIIIIIT 'A
Being a tract of land situated In the 0 walker Survey Ab tract No 1330 Denton
County, Texas and being a part of the tract described inl he Deed from Osry Hancock to
Roger C Sullivan and Robert H. Heiser recorded in Voluei 70, Pege 60 of the Deed
Record#, Denton County, Texaal the subject tract being me; particularly described am
Iglowel
` BEGINNING for the Southwest corner of the tract being dae$'ibed herein, at an 112 Inch
Iron rod set in Edwards Road in the occupied South line ollthe Sullivan find Heiser
tract South 00 degrees 29 minutes 00 seconds Bait a distance of 707 75 feet from the
li iapparent Southwest Corner thereof and also being in Nortf,11ine of Allan Estates Hobile
Oomp pork as Shown by the Plat thereof recorde:dot
in CabinT 1c, Pigs 303 of the Plat
ppcetde of Denton County, Texael
i
THENCE North 01 degrees 31 minutes 00 second@ passing at 15.0 feet a 112 inch
iron rod eat under a gate in a fence along the North eidelof Edwards Road and
continuing, in all, a total distance of 660.00 feet to a:112 inch iron rod set for the
Northwest corner of the herein described tract, �
THENCE South 00 degrees 29 minutes 00 seconds East parallel with the South line of tl,e
Sullivan and Heiser tract a distance of 660 00 feet to a 112 inch iron rod eat for tl,e
Northeast corner of the herein described tractl h
THENCE South 01 degrees 31 minutes 00 seconds Heat a distance of 660 Oo feet to a 112
Inch Iron rod eat for the Southeast corner of the herein gascrlbed tract In the South
line of the Sullivan and Heiser tract in the reamine of e,l old fence line about 12
feet South of a standing fences
THENCE NorthISB degrees 29 minutes 00 seconds Neat with th9 South line of the Sullivan
and Heiser tract along Edwards Road part of the way a diefgnce of 660 00 feet to tl,e
PLACE OF BEGINNING and enclosing 10 00 acres of land, mo Yel or less
o!M
G F. No.: 96-1332S
Policy No : 428776
OWNER POLICY OF TITLE INSURANCE
SCHEDULE B
EXCEPTIONS FROM COVERAGE
This Policy does not insure against lose or damage (and the Company will not pay costs,
attorneys' fees or expenses) that arise by reason of the terms and conditions of the
leases or easements insured, if any, shown in Schedule A and the following matters:
1. The following restrictive covenants of record intemized below (the Company must
either insert specific recording data or delete this exception):
This exception is hereby deleted in its entirety.
2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any
encroachments or protrusions, or any overlapping of improvements.
3. Homestead or community property or survivorship rights, if any, of any spouse of any
insured.
4. Any titles or rights asserted by anyone, including, but not limited to, persons, the
public, corporations, governments or other entities,
a. to tidelands, or lands comprising the shores or bade of navigable or perennial
rivers and streams, lakes, bays, gulfs or oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as established or
changed by any government, or
C. to filled -in lands, or artificial islands, or
d. to statutory water rights, including riparian rights, or
e. to the area extending from the line of mean low tide to the line of
vegetation, or the right of access to that area or easement along and across
that area.
5. Standby fees, taxes and assessments by any taxing authority for the year 1996 and
subsequent years, and subsequent taxes and assessments by any taxing authority for
prior years due to change in land usage or ownership.
6. The following matters and all terms of the documents creating or offering evidence of
the matters (We must insert matters or delete this exception)•
a Any visible and apparent easements over and across said property, the
existence of which does not appear of record
b Any part or portion of the herein described property, lying within the
boundaries of a public or private road or right of way.
c. Rights of parties in possession
d. Any outstanding oil, gas and other mineral interest owned by others of record
in the office of the County Clerk of Denton County, Texas, including, but not
limited to the following:
RESERVATION IN DEED FROM ROGER C. SULLIVAN, ET AL TO ABNER, INC FILED JAN. 15,
1993 AND RECORDED IN VOLUME 3427, PAGE 492, REAL PROPERTY RECORDS, DENTON COUNTY,
TEXAS.
Alamo Title Insurance of Texas
Form T-1. Owner Policy -Schedule B Effective January 1, 1993
G. F. No . 96-1332S
Policy No.: 4,28776
CONTINUATION OF SCHEDULE B
*Title to said mineral leases/reservations have not been researched subsequent to
date of document.
e. Easements retained by ROGER C. SULLIVAN, ET AL in Deed to ABNER, INC. filed
JAN. 15, 1993 and recorded in Volume 3427, Page 492, REAL PROPERTY Records, Denton
County, Texas.
Alamo Title Insurance of Texas
Form T-1. Owner Policy -Schedule B Effective January 1, 1993
A10191(1/93)
OWNER POLICY OF TITLE INSURANCE
Issued by
426776
Alamo Title Insurance
of Texas
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE
CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, ALAMO TITLE INSURANCE OF
TEXAS, a Texas 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
By
1 Title to the estate or interest described in Schedule A being vested other than as stated therein,
2 Any defect in or lien or encumbrance on the title,
3 Any statutory or constitutional mechanic's, contractor's, or matenalman's lien for labor or material having
its inception on or before Date of Policy,
4 Lack of a right of access to and from the land,
5 Lack of good and indefeasible title
The company also will pay the costs, attorneys' fees and expenses incurred in defense of the title, as
insured, bIut only to the extent provided in the Conditions and Stipulations
ALAMO TITLE INSURANCE OF TEXAS
� n
By L Z � Y�
President
FORM T 1 Owner Policy of Title Insurance Effective January 1
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30tl83A00 WOsd SNOISnim
CONDITIONS AND STIPULATIONS Continued
DEFENSE AND PROSECUTION OF ACTIONS DUTY OF INSURED CLAIMANT TO COOPERATE
(a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations the Company at its own coat and without
unreasonable delay shall provide for the defense of an insured in litigation in which any thud party, asserts a claim adverse to the title or Interest as insured but only as to
those stated causes of action alleging a defect lien o encumbrance or other matter insured against by this policy The Company shall have the right to select counsel of Its
choice (subject to the right of the Insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not
pay the fees of any other counsel The Company will not pay any fees costs or expenses Incurred by the insured in the defense of those causes of action that allege
matters not insured against by this policy
(b) The Company shall have the right ar- its own cost to Institute and prosecute any action or proceeding or to do any other act that in Its opinion may be necessary or
desirable to establish the title to the estate or Interest as insured or to prevent or reduce loss or damage to the Insured The Company may take any appropriate action
under the terms of this policy whether or not it shall be liable hereunder and shall not thereby concede liability or waive any provision of this policy It the Company shall
exercise its rights under this paragraph It shall do so diligently
(c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy the Company may pursue any
litigation to final determine Ion by a court of competent jurisdiction and expressly reserves the right in Its sole discretion to appeal from any adverse judgment or order
(d) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding the Insured shall secure to the
Company the nght to so prosecute or provide defense in the action or proceeding and all appeals therein and permit the Company to use at Its option the name of the
insured for this purpose Whenever requested by the Company the insured at the Companys expense shall give the Company all reasonable aid g) in any action or
proceeding securing evidence obtaining witnesses prosecuting or defending the action or proceeding or effecting settlement and hi) in any other lawful epithet In the
opinion of the Company may be necessary or desirable to establish the title to the estate or interest as insured If the Company is prejudiced by the failure of the insured to
furnish the required cooperation the Company s obligations to the insured under the policy shall terminate including any liability or obligation to defend prosecute or
continue any litigation with regard to the matter or matters requiring such cooperation
PROOF OF LOSS OR DAMAGE
In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company a proof of loss or damage signed and sworn
to by the insured claimant shall be furnished to the Company within 91 days after the insured claimant shall ascertain the facts giving rise to the joss or damage The proof of
loss or damage shall describe the defect in or ben or encumbrance on the title or other matter insured against by this policy that constitutes the basis of loss or damage and
shall state to the extent possible the basis of calculating the amount of the loss or damage If the Company is prejudiced by the failure of the insured claimant to provide the
required proof of loss or damage the Company s obligations to the insured under the policy shall terminate including any liability or obligation to defend prosecute or continue
any litigation with regard to the matter or matters requiring such proof of loss or damage
In addition the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for
examination inspection and copying at such reasonable times and pieces as may be designated by any authorized representative of the Company all records books ledgers
checks correspondence and memoranda whether bearing a date before or after Date of Policy which reasonably pertain to the loss or damage Further if requested by any
authorized representative of the Company the insured claimant shall grant its permission in writing for any authorized representative of the Company to examine inspect and
copy all records books ledgers checks rorrespondence and memoranda in the custody or control of a third party which reasonably pertain to the loss or damage All
information designated as confidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless in the reasonable
judgment of the Company it is necessary in the administration of the claim Failure of the insured claimant to submit for examination under oath produce other reasonably
requested information or grant permmsson to secure reasonably necessary information from third parties as required in this paragraph shall terminate any liability of the
Company under this policy as to that claim
OPTIONS TO PAYIOR OTHERWISE SETTLE CLAIMS TERMINATION OF LIABILITY
In case of a claim under this policy the Company shall have the following additional options
(a) To Pay or Tender Payment of the Amount of Insurance
To pay or tender payment of the amount of insurance under this policy together with any costs attorneys fees and expenses incurred by the insured claimant which were
authorized by the Company up to the time of payment or tender of payment and which the Company is obligated to pay
Upon the exercise by the Company of this option all liability and obligations to the insured under this policy other than to make the payment required shall terminate
including any liability or obligation to defend prosecute or continue any litigation and the policy shall be surrendered to the Company for cancellation
(b) To Pay or Otherwlse Settle With Parties Other than the Insured or With the Insured Claimant
(I) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy together with any costs attorneys
fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay or
(in to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy together with any costs attorneys fees and expenses incurred
by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay
Upon the exercise by the Company of either of the options provided for in paragraphs (b)(i) or (i) the Company s obligations to the insured under this policy for the claimed loss
or damage other than the payments required to be made shall terminate including any liability or obligation to defend prosecute or continue any litigation
r DETERMINATION EXTENT OF LIABILITY AND COINSURANLE
This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of
matters insured against by this policy and only to the extent herein described
(a) The liability of the Company under this policy shall not exceed the least of
(I) the Amount of Insurance stated in Schedule A
QQ the difference between the value of the insured estate or interest a, insured and the value of the insured estate or interest subject to the defect hen or encumbrance
insured against by this policy at the date the insured claimant is required to furnish to Company a proof of loss or damage in accordance with Section 5 of these
Conditions and Stipulations
(b) In the event the Amount of Insurance stated in Schedule A at the Date of 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 which increases the value of the insured estate or interest
by as 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 partial loss the Company shall only pay the loss pro rate 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
fill where a subsequent improvement has been made as to any partial loss the Company shall only pay the loss pro rate in the proportion that 120 percent of the
Amount of Insurance stated in Schedule A bears to the svm of the Amount of Insurance stated in Schedule A and the amount expended for the improvement
The provisions of this paragraph shall not apply to costs attorneys fees and expenses for which the Company is liable under this policy and shall only apply to that portion of any
loss which exceeds n the aggregate 10 percent of the Amount of Insurance stated in Schedule A
(c) The Company will pay only those costs attorneys ees 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 parcels that are tot 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 rate basis as it the amount of insurance under this policy was divided pro rate as to the value on Date of Policy of each separate
parcel to the whole exclusive of any improvements made subsequent to Date of Policy unless a liability or value has otherwise been agreed upon as to each parcel by the
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 tnie or reni the alleged defect ben or encumbrance or cures the lack of a right of access to or from the land all as insured or takes
action in accordance with Section 3 or Section 6 in a reasoned y diligent manner by any method including litigation and the completion of any appeals therefrom it shall
have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby
I In the event of any litigation including imgatron 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 loss or damage to of y nsured for liability voluntarily assumed by the insured in setting any claim or suit without the prior written consent
of the Company
10 REDUCTION OF INSURANCE REDUCTION OR TERMINATION OF LIABILITY
All payments under this policy except payments made for costs attorneys fees and expenses shall reduce the amount of the insurance pro tanto
(Continued on Reverse Side of Page)
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e CONDITIONS AND STIPULATIONS Continued x
11 LIABILITY NONCUMULATIVE
it Is expreaety understood that the amount of insurance under this policy shall 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 Ilan on
the estate or Interest described or referred to In Schedule A and the amount so paid shall be deemed a payment under this policy to the Insured owner
12 PAYMENT OF LOSS
(a) No payment shall be made without producing this policy for endorsement of me payment unless the policy has been lost or destroyed In which case proof of lose or
destruction shall be furnished to the satisfaction of the Company
(b) When liability and the extent of loss or damage has been definitely fixed In accordance with these Conditions and Stipulations the loss or damage shall be payable within 30
days thereafter
13 SUBROGATION UPON PAYMENT OR SETTLEMENT
(a) The Company a Right of Subrogation
Whenever the Company shall have seined 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 all rights and remedies that 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 loss of the insured claimant the Company shall be subrogated to these rights and remedies In the proportion
that the Company a payment bears to the whole amount of the loss
If Ices 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, shall be required to pay an
that pad of any losses insured against by this policy that shall exceed the amount If any lost to the Company by reason of the Impairment by the insured claimant of 0 e
Company a right of subrogation
(b) The Company Rights Against Non Insured Obllgore
The Company right of subrogation against non insured obligors shall exist and shall include without limitation the rights of the Insured to Indemnities guarantee other
policies of insurance or bonds notwithstanding any terms or conditions contelned in those Instruments that provide for subrogallon rights by reason of this polity
14 ARBITRATION
Unless prohibited by applicable law or unless this arbitration section is deleted by specific provision In Schedule B of this policy either the company or the insured may demand
arbitration pursuant to the Tda Insurance Arbitration Rules of the American Arbitration Association Arbitrable matters may Include but are not limited to any controversy or cbim
between the Company 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 lase SHALL BE arbitrated at the request of either the Company or the Insured unless the insured
Is an Individual person (as distinguished from a corporation trust partnership association or other legal entity) All arbitrable matters when the Amount of Insurance is In excess of
$1 000 000 shall be arbitrated only when agreed to by both the Company and the Insured Arbitration pursuant to this policy and under the Rules In all ad on the date the demand
for arbitration Is made or at the option of the Insured the Rules In effect at Date of Policy shall be binding upon the parties The award may Include attorneys fees only If the laws
of the state In which the land is located Penn a court to award attorneys fees to a prevailing parry Judgment upon the award rendered by the Arbitrator(s) may be entered in any
crud having jurisdiction thereof
The law of the srius of the land shall apply to an arbitration under the Title Insurance Arbitration Rules
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 it 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 arise 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 and 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 law the policy shall be deemed not to include that proyision and all other provisions shell
remain in full force 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 shall be addressed to
the Company at 613 N W Loop 410 Suite 100 San Antonio Texas 78216
COMPLAINT NOTICE
Should any dispute arise about your premium or about a claim that you have filed, contact the agent or write to the Company that Issued the policy If the problem Is
not resolved, you also may write the Texas Department of Insurance, P 0 Box 1491 Austin, TX 7871441091, Fax No (512) 476 "1 This nodes of complaint procedure Is
for information only and does not beceme a pan or condition of this policy