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2014-186
s:\legal\our documents\ordinances\14\duncan counteroffer.doc ORDINANCE NO. 2014-186 AN ORDINANCE AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE A COUNTEROFFER FROM JOHN FRED DUNCAN AND BENNY CARL DUNCAN, INDEPENDENT CO-EXECUTORS OF THE ESTATE OF ELIZA F. DUNCAN, DECEASED (COLLECTIVELY THE "OWNER"), TO THE PURCHASE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS ("CITY"), AS BUYER, AND OWNER, FOR THE PURCHASE BY THE CITY OF A 1.364 ACRE TRACT WITH WAIVER OF SURFACE USE RELATED TO THE MINERAL ESTATE ("PROPERTY 1NTERESTS") FOR ONE HUNDRED EIGHTY THOUSAND DOLLARS AND NO/CENTS ($180,000.00) (THE PROPERTY 1NTERESTS ARE BEING PURCHASED FOR THE PUBLIC USE OF EXPANDING AND IMPROVING MAYHILL ROAD, A MUNICIPAL STREET AND ROADWAY LOCATED IN THE CITY OF DENTON, TEXAS, AND ARE LOCATED IN THE M.E.P. & P.R.R. SURVEY, ABSTRACT NO. 927, CITY OF DENTON, DENTON COUNTY, TEXAS, AND GENERALLY LOCATED IN THE 1000 BLOCK OF SOUTH MAYHILL ROAD); AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas ("City") has initiated the widening and expansion of South Mayhill Road affecting, among other lands and interests, the Property Interests; WHEREAS, the City Council finds that the widening and expansion of South Mayhill Road constitutes a valid public use by the City; WHEREAS, the City made both an Initial Offer and Final Offer to the Owner to purchase the Property Interests; WHEREAS, the Owner has made a counteroffer to the Final Offer of City; WHEREAS, the City is amenable to the counteroffer, and finds that it is in the best interest to agree to it; and WHEREAS, after due consideration of the public interest and necessity and the public use and beneiit to accrue to the City; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1_. The recitations and findings contained in the caption and preamble of this ordinance are incorporated by reference. SECTION 2. The City Manager, or his designee, is authorized (a) to execute on behalf of the City (i) the counteroffer from Owner as represented by the attached Purchase Agreement, by and between the City and Owner, with a purchase price of $180,000.00; and (ii) any other documents necessary for closing the transactions contemplated by the Purchase Agreement; and (b) to make expenditures in accordance with the terms of the Purchase Agreement. SECTION 3. It is the intention of the City Council of the City of Denton, Texas, that if any phrase, sentence, section, or paragraph of this ordinance shall be declared unconstitutional or otherwise invalid by final judgment of a court of competent jurisdiction such unconstitutionality or invalidity shall not affect any of the remainder of this ordinance since the same would have been enacted by the City Council without the incorporation of the unconstitutional or invalid phrase, sentence, section or paragraph. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the i°'�°`�,� day of ����� �� _, 2014. .�� , � �� � � '� � ��� �( � . ..� � - CHRI� �TATT.`, N�.�,,YOR ATTEST: JENNIFER WALTERS, CITY SECRETARY ���� BY• .� ` ,� r � APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ��� �� � �£ ��., �� I� � � � � � , ; , ,, ; � � , '� � � �; � i� �' '�; � R � � � . � � � � � � � , � � � , , � � . � , , ' � ', , � � � , � . : �; • ' � , '! ' � � THIS PURCHASE AGREEMENT (the "Agreement") is dated �_ �_ � __ , 2014, but effective as of the date provided below, between the John Fred Duncan and Benny Carl Duncan, Independent Co-Executors of the �state of Eliza F. Duncan, deceased (collectively referred to herein as "Owner") and the City of Denton, Texas ("City"). WITNESSETH: WHEREAS, John Fred Duncan and Benny Carl Duncan, Independent Co-Executors of the Estate of �liza F. Duncan, deceased, are the Owner of a tract of land (the "Land") in the M.E.P. & P.R.R. Co. Survey, Abstract Number 927, being affected by the public improvement project called the Mayhill Road Widening and Improvements Project ("Project"); and WHEREAS, City is in need of certain fee simple lands, being a part of the Land, related to the Project; and WHEREAS, it is desirous of both parties to stipulate and agree to the terms and conditions associated with the purchase of the necessary real property interests for the Project; NOW, THEREFORE, for Ten and No/100 Dollars ($10.00), and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: A. At Closing, the Owner shall grant, execute, and deliver to the City a Special Warranty Deed (herein so called), conveying to the City, subject to the reservations described below, the tract of land being described in Exhibit "A" and depicted in Exhibit "B" to that certain Special Warranty Deed, and other interests as prescribed therein (the "Fee Lands"), the Special Warranty Deed being attached hereto as Attachment 1 and made a part hereof. The Special Warranty Deed shall be in the form and upon the terms as attached hereto and incorporated herein as "Attachment 1 ". B. Owner, subject to the limitation of such reservation made herein, shall reserve, for themselves, their heirs, devisees, successors and assigns all oil, gas and other minerals in, on and under and that may be produced from the Fee Lands. Owner, their heirs, devisees, successors and assigns, shall not have the right to use or access the surface of the Fee Lands, in any way, manner or form, in connection with or related to the reserved oil, gas, and other minerals and/or related to exploration and/or production of the oil, gas and other minerals reserved herein, including without limitation, use or access of the surface of the Fee Lands for the location of any well or drill sites, well bores, whether vertical or any deviation from vertical, water wells, pit areas, seismic activities, tanks or tank batteries, pipelines, roads, electricity or other utility infrastructure, and/or for subjacent or lateral support for any surface facilities or well bores, or any other infrastructure or improvement of any kind or type in connection with or related to the reserved oil, gas and other minerals, and/or related to the exploration or production of same. As used herein, the term "minerals" shall include oil, gas and all associated hydrocarbons, and shall exclude (i) all substances that any reasonable extraction, mining or other exploration and/or production method, operation, process or procedure would consume, deplete or destroy the surface of the F'ee Lands; and (ii) all substances (except oil and gas) which are at or near the surface of the Fee Lands. The intent of the parties hereto is that the meaning of the term "minerals" as utilized 2 herein, shall be in accnrdance with that set forth in R�ed v. Wylre, 597 S.W.2d 743 (Tex. 1980), As used herein, the term "surface ol the f�ee l.ands" shall inclucle the area $'rom the surf'ace of thc earth to a depth of ixve hundrec� feet (500') belnw the surface of the earth and al.l areas above the suriace o:fthe earth. 2. As consideration for the gra.ntin� ancl conveyin�; o:C'the .I�ee I.Jands ta the City, the; City shall pay to Uwner at C;losin�; the suzn cal' One Hundred �ighty Thausand and No/l0U DUl7ars ($180,OUO.OU). �'�- 'T'he monetary co.mpensation prescribe:d in Chis Scetion 2 is herein referred to as the "'I"otal Monetary Campensation". 3. The Owner shall convey and grant to the City the ��ee I..anc�s frcc and clear �f all debts,, .liet�s and ather encumbrances {the "Encumbxances"). 'i"he Ownc�c• shall assist and support satisfacCion oF all closir►g requirements of tlYe C;ity in relation to salicitatio�i of releases or subordinations oi thc I;nctunbra�lces and ather curative effc�rts affecting the �'r;e Lands, if Yiecessar.y icx the discxetian af the City. In the event tlaat al.l i:;ncumbrances are not cured tc� the satisfaction o:f' City prior to Closin�;, such shall not be a default hereunder, although Uwner inay ather.wise bc in deiault under Section 1(?, below. However, if the rncrinlbrances are nat cured as providcd herein, C;ity .has the optic�n of eithcr (i) waiv'rn� the defeats related ta the remainin�; i;ncum.br�nces by notice in w.rit.ing fio Ov'mcr on or prior to ihe C;losing Date, upon which the remaining Encumbr�nCes slxall becornc Permitted Bxceptions (herein so called), and prnceed to cic�s� the transaction eonteznplated by this A�;reement; or (ii} terminating this AgreemenC by notice in writing tn Owr�e;r, in which latte.r event Owner and City shall ha�e nn tiirther obl.igations uncicr this Agreement. 4. Owner stipulates that the Total Monetary Coinpensation p�ymezZt cnnstitutes and includes all compensation d�Ye Owner by City related tu the Project, incluc�ing without liinitat.ioa�, any damage to or diminution in thc value af tl�e remaia�der of Uwner's property causeci by, ineiclent to, or related to the Project, value of; da.mage to anci/or costs of repair, replaccment andlc�r relocation of any imprnvements, t«rt, landscape, vegetatian, or any other structure or facility of any kind within the ��'ee Lands relatecl lo activities coxidtiacted pursuant tc� the City ownership of the .�ee I.ancls, interference with Owner's activitiLS on other property interests of Owner, cause� by or related to 3 herein, shall be in accordance with that set forth in Reed v. Wylie, 597 S.W.2d 743 (Tex. 1980). As used herein, the term "surface of the Fee Lands" shall include the area from the surface of the earth to a depth of five hundred feet (500') below the surface of the earth and all areas above the surface of the earth. "� 2. As consideration for the granting and conveying of the Fee Lands to the City, the City shall pay � �� �°� � to Owner at Closing the sum of One Hundred Eighty Thousand and No/100 Dollars ($180,000.00). The monetary compensation prescribed in this Section 2 is herein referred to as the "Total Monetary Compensation". 3. The Owner shall convey and grant to the City the Fee Lands free and clear of all debts, liens and other encumbrances (the "Encumbrances"). The Owner shall assist and support satisfaction of all closing requirements of the City in relation to solicitation of releases or subordinations of the Encumbrances and other curative efforts affecting the Fee Lands, if necessary in the discretion of the City. In the event that all Encumbrances are not cured to the satisfaction of City prior to Closing, such shall not be a default hereunder, although Owner may otherwise be in default under Section 10, below. However, if the Encumbrances are not cured as provided herein, City has the option of either (i) waiving the defects related to the remaining Encumbrances by notice in writing to Owner on or prior to the Closing Date, upon which the remaining Encumbrances shall become Permitted Exceptions (herein so called), and proceed to close the transaction contemplated by this Agreement; or (ii) terminating this Agreement by notice in writing to Owner, in which latter event Owner and City shall have no further obligations under this Agreement. 4. Owner stipulates that the Total Monetary Compensation payment constitutes and includes all compensation due Owner by City related to the Project, including without limitation, any damage to or diminution in the value of the remainder of Owner's property caused by, incident to, or related to the Project, value of, damage to and/or costs of repair, replacement and/or relocation of any improvements, turf, landscape, vegetation, or any other structure or facility of any kind within the Fee Lands related to activities conducted pursuant to the City ownership of the Fee Lands, interference with Owner's activities on other property interests of Owner, caused by or related to 3 activities related to the Project on the Fee Lands, whether accruing now or hereafter, and Owner hereby releases for themselves, their heirs, devisees, successors and assigns, the City, it's officers, employees, elected officials, agents and contractors from and against any and all claims they may have now or in the future, related to the herein described matters, events and/or damages. 5. The Closing (herein so called) shall occur in and through the office of Title Resources, LLC, 525 South Loop 288, Suite 125, Denton, Texas, 76205 ("Title Company"), with said Title Company acting as escrow agent, on the date which is 90 days after the Effective Date, unless the Owner and the City mutually agree, in writing, to an earlier or later date ("Closing Date"). In the event the Closing Date, as described above, occurs on a Saturday, Sunday or Denton County holiday, the Closing Date shall be the next resulting business day. 6. The stipulated Total Monetary Compensation amount shall be paid by the City at Closing jointly to the Owner through the Title Company. Ad valorem taxes relating to the Fee Lands for the calendar year in which Closing shall occur shall be prorated between Owner and City as of the Closing Date. If the actual amount of taxes for the calendar year in which Closing shall occur is not known as of the Closing Date, the proration shall be based on the amount of taxes due and payable with respect to the Fee Lands for the preceding calendar year, and shall be readjusted in cash as soon as the amount of taxes levied against the Fee Lands for the calendar year in which Closing shall occur is known. The result of such proration is that the Owner shall pay for those taxes attributable to the period of time prior to the Closing Date (including, but not limited to, subsequent assessments for prior years due to change of land usage or ownership occurring prior to the Closing Date) and City shall pay for those taxes attributable to the period ,commencing as of the Closing Date. All other typical, customary and standard closing costs associated with this transaction shall be paid speciiically by the City, except for Owner's attorn�yj� 1:cus, i���a�ay, r�rl�icl-r ����ll ��� ��icl k�� �'�u��e�. ��� �� � � r��� �� � 7. The date on which this Agreement is executed �� tl�� ��l��ll k�� [��c� "I�����cti�� l�ate" a�`ih�� Agreement. B.A. In the event Owner, or either of them, shall default in the performance of any covenant or term provided herein, and such default shall be continuing after ten (10) days written notice of default and 4 opportunity to cure, City may exercise any right or remedy available to it by law, contract, equity or otherwise, including without limitation, the remedy of specific performance. B. In the event City shall default in the performance of any covenant or term provided herein, and such default shall be continuing after ten (10) days written notice of default and opportunity to cure, Owner may, as its sole and exclusive remedy, either (i) terminate this Agreement prior to Closing by written notice of such election to City; or (ii) enforce specific performance of this Agreement. 9. THE LAWS OF THE STATE OF TEXAS SHALL CONTROL AND APPLY TO THIS AGREEMENT FOR ALL PURPOSES. THIS AGREEMENT IS PERFORMABLE IN DENTON COUNTY, TEXAS. VENUE FOR ANY ACTION ARISING HEREUNDER SHALL LIE SOLELY IN THE COURTS OF COMPETENT JURISDICTION OF DENTON COUNTY, TEXAS. 10. From and after the Effective Date of this Agreement, through and including the Closing Date, Dwner shall not (i) convey or lease any interest in the Fee Lands; or (ii) enter into any Agreement that will be binding upon the Fee Lands, or upon the Owner with respect to the Fee Lands after the date of Closing. 11. Any notices prescribed or allowed hereunder to Owner or City shall be in writing and shall be delivered by telephonic facsimile, hand delivery or by United States Mail, as described herein, and shall be deemed delivered and received upon the earlier to occur of (a) the date provided if hand delivered or delivered by telephonic facsimile; and (b) on the date of deposit of, in a regularly maintained receptacle for the United States Mail, registered or certified, return receipt requested, postage prepaid, addressed as follows: OWNER: John Fred Duncan, Independent Co Executor of the Estate of Eliza F. Duncan, deceased �.. � .� �.__ Phone��1 �� � � � � � Telecopy: CITY: City of Denton Paul Williamson Real Estate and Capital Support 901-A Texas Street Denton, Texas 76209 Telecopy: (940) 349-8951 � Benny Carl Duncan, Independent Co Executor of the Estate of Eliza F. Duncan, deceased I'�Y�T�� .�� � _.�_.� ' � °�� � Telecopy: ��'� � � ��"� t1 �r�s �) Copies to: For Owner: Telecopy: City of Denton Paul Williamson Real Estate and Capital Support 901-A Texas Street Denton, Texas 76209 Telecopy: (940) 349-8951 Por City: Larry Collister, Deputy City Attorney City Attorney's Office 215 E. McKinney Denton, Texas 76201 Telecopy: (940) 382-7923 12. This Agreement constitutes the sole and only agreement of the parties and supersedes any prior understandings or written or oral agreements between the parties with respect to the subject matter of this Agreement. Time is of the essence with respect to this Agreement. 13. The representations, warranties, agreements and covenants contained herein shall survive the Closing and shall not merge with the Special Warranty Deed. 14. In the event prior to the Closing Date, condemnation or eminent domain proceedings are threatened or initiated by any entity or party other than the City that might result in the taking of any portion of the Fee Lands, City may, at its election, terminate this Agreement at any time prior to Closing. 15. Authority to take any actions that are to be, or may be, taken by City under this Agreement, including without limitation, adjusting the Closing Date of this Agreement are hereby delegated by City, pursuant to action by the City Council of Denton, Texas, to Frank Payne, City Engineer of City, or his designee. � � i 1 � �� �� �� � ., r ,,. , . . �� ,. �- �„�..� �-�_ By: �.,. �_ GEORGE C. CAMPBELL, CITY MANAGER Date: � �`�' , 2014 � JENNIFER WALTERS, C�I'I"`� SEC TARY � �,, � �;t, � �� �� �� �` �'`; � BY: �� '��" � �-� �t � � 4.�f�� �,,,� � � 1d • �. w i � ' 2014 Date: � ��.�' 4 �� ��� . , �, . � 1 � � I' : ' I' �, � � ., �- BY: ;,��'` _r --�.—�««----- � � , 2014 �. Date: ���' �' ' CITY OF DENTON, TEXAS ��"" � ..p= ��W � BY; � `�..����� .y���...m�_���.. G��RGE C. CAMPBELL, CITY MANAGER DATE : ��., �`t.�� �`f � # � � �`� }�'��� �— ATTEST: ,�r�°�"1��:FER WAL BY f.� ��l� 9' TM r" �'`�' , CITY SECRETARY �� .�. e��� � APPROVED AS TOC�LEGAL FORM: ANITA BURGESS, CITY ATTORNEY ��� �� � �� ,,,,.� �....__ BY : � �" �� � �' �'�� _ ����.� � ;4� i DATE : � s � � �. � �'�,.. Y� � �� � � . ..<.,.M.w. p..., ��.�. ,.: „'.. . ���,„�,.�.��.. Jtali�� � cc C���r c��x�a, Independent Co-Executor of il� I:��t�tc of Eliza F. Duncan, deceased ._ .::.� .� _._ Benny Carl ��.�����rxr Tii�l������1c��.t Co-Executor of the Estate of Eliza F. Duncan, deceased ..���.. Date: s,�����;� . � s 2014 0 RECEIPT OF AGREEMENT BY TITLE COMPANY By its execution below, Title Company acknowledges receipt of one (1) executed copy of this Agreement. Title Company agrees to comply with, and be bound by, the terms and provisions of this Agreement to perform its duties pursuant to the provisions of this Agreement and comply with Section 6045(e) of the Internal Revenue Code of 1986, as amended from time to time, and as further set forth in any regulations or forms promulgated thereunder. TITLE COMPANY: Title Resources, LLC 525 South Loop 288, Suite 125 Denton, Texas 76205 Telephone: (940) 381-1006 Telecopy: (940) 898-0121 I� Printed Name: Title: Contract receipt date: __ _ , 2014 E� tc)26&z1/b NOTICEOFCONFIDENTIALITYRIGHTS:IFYOUAREANATURAL PERSON,YOUMAYREMOVEORSTRIKEANYORALLOFTHE FOLLOWINGINFORMATIONFROMANYINSTRUMENTTHAT TRANSFERSANINTERESTINREALPROPERTYBEFOREITISFILEDFOR RECORDINTHEPUBLICRECORDS:YOURSOCIALSECURITYNUMBER ORYOURDRIVER'SLICENSENUMBER. SPECIALWARRANTYDEED STATEOFTEXAS§ KNOWALLMENBYTHESEPRESENTS: § COUNTYOFDENTON§ That,JohnFredDuncanandBennyCarlDuncan,IndependentCo-Executorsof theEstateofElizaF.Duncan,deceased(hereincollectivelycalled“Grantor”),forandin considerationofthesumofTENANDNO/100DOLLARS($10.00),andothergoodand valuableconsiderationtoGrantorinhandpaidbytheCITYOFDENTON,TEXAS,a TexasHomeRuleMunicipalCorporation(hereincalled“Grantee”),215E.McKinney, Denton,Texas76201,thereceiptandsufficiencyofwhichareherebyacknowledgedand confessed,hasGRANTED,SOLDandCONVEYED,andbythesepresentsdoes GMNT,SELLandCONVEY,untoGranteealltherealpropertyinDentonCounty, TexasbeingparticularlydescribedinExhibit“A”anddepictedinExhibit“B”,attached heretoandmadeaparthereofforallpurposes,andbeinglocatedinDentonCounty, Texas,togetherwithanyandallrightsorinterestsofGrantorinandtoadjacentstreets, alleysandrightsofwayandtogetherwithallandsingulartheimprovementsandfixtures thereonandallotherrightsandappurtenancesthereto(collectively,the“Property”). Grantor,subjecttothelimitationofsuchreservationmadeherein,reserves,for themselves,theirheirs,devisees,successorsandassignsalloil,gasandothermineralsin, onandunderandthatmaybeproducedfromtheProperty.Grantor,theirheirs,devisees, successorsandassignsshallnothavetherighttouseoraccessthesurfaceofthe Property,inanyway,mannerorform,inconnectionwithorrelatedtothereservedoil, gas,andothermineralsand/orrelatedtoexplorationand/orproductionoftheoil,gasand othermineralsreservedherein,includingwithoutlimitation,useoraccessofthesurface ofthePropertyforthelocationofanywellordrillsites,wellbores,whetherverticalor anydeviationfromvertical,waterwells,pitareas,seismicactivities,tanksortank batteries,pipelines,roads,electricityorotherutilityinfrastructure,and/orforsubjacentor lateralsupportforanysurfacefacilitiesorwellbores,oranyotherinfrastructureor improvementofanykindortypeinconnectionwithorrelatedtothereservedoil,gasand otherminerals,and/orrelatedtotheexplorationorproductionofsame. Asusedherein,theterm“minerals”shallincludeoil,gasandallassociatedhydrocarbons andshallexclude(i)allsubstances(exceptoilandgas)thatanyreasonableextraction, miningorotherexplorationand/orproductionmethod,operation,processorprocedure wouldconsume,depleteordestroythesurfaceoftheProperty;and(ii)allsubstances (exceptoilandgas)whichareatornearthesurfaceoftheProperty.Theintentofthe partiesheretoisthatthemeaningoftheterm“minerals”asutilizedherein,shallbein accordancewiththatsetforthinReedv.Wylie,597S.W.2d743(Tex.1980). Asusedherein,theterm“surfaceoftheProperty”shallincludetheareafromthesurface oftheearthtoadepthoffivehundredfeet(500’)belowthesurfaceoftheearthandall areasabovethesurfaceoftheearth. Thisconveyanceissubjecttothefollowing: 1.EasementexecutedbyMAYHILLSCHOOLtoTEXASPOWER&LIGHT COMPANYfiledNovember12,1936,recordedinVolume262,Page169,Deed RecordsofDentonCounty,Texas;asshownonsurveydatedJanuary28,2013, preparedbyDouglasL.Arthur,RPLS#4537. 2.EasementexecutedbyDENTONINDEPENDENTSCHOOLDISTRICTto TEXASPOWER&LIGHTCOMPANYfiledMay25,1951,recordedinVolume 372,Page46,DeedRecordsofDentonCounty,Texas;asshownonsurveydated January28,2013,preparedbyDouglasL.Arthur,RPLS#4357. 3.EasementexecutedbyW.H.BENTLEYandwife,MAYEA.BENTLEYto SINCLAIRREFININGCOMPANYfiledDecember20.1947.recordedin Volume341,Page265,DeedRecordsofDentonCounty,Texas. Page2of4 4. EasementexecutedbyW.H.BENTLEYandwife,MAYEA.BENTLEYto LONESTARGASCOMPANY,filedMay27,1955,recordedinVolume410, Page173,DeedRecordsofDentonCounty,Texas;asaffectedbyPartialRelease filedJanuary23,1969,recordedinVolume113,Page130,ReleaseRecordsof DentonCounty,Texas. 5 Terms,provisionsandconditionsregardingsubsurfaceformationscommonly knownasreferredtoastheStrawnSandformationandtheCordellSand formation,inDeedexecutedbyJ.G.DUNCANandwife,FRANCESDUNCAN toLONESTARGASCOMPANY,filedMay10,1967,recordedinVolume550, Page564,DeedRecordsofDentonCounty,Texas. 6. SubjecttoBoundaryLineAgreementexecutedbyandbetweenDONALDGENE BARBERandwife,CLAUDINEBARBERandJ.G.DUNCANandwife, FRANCESDUNCAN,regardingtheSouthboundarylineofsubjectproperty, filedJanuary23,1969,recordedinVolume578,Page439,DeedRecordsof DentonCounty,Texas. 7.Powerlinesandpolesinplace;fenceencroachmentacrossproperty,asshownon surveydatedJanuary28,2013,preparedbyDouglasL.Arthur,RPLS#357. TOHAVEANDTOHOLDtheProperty,togetherwithallandsingulartherights andappurtenancestheretoinanywisebelonginguntoGranteeandGrantee’ssuccessors andassignsforever;andGrantordoesherebybindGrantorandGrantor’ssuccessorsand assignstoWARRANTANDFOREVERDEFENDallandsingularthePropertyunto GranteeandGrantee’ssuccessorsandassigns,againsteverypersonwhomsoeverlawfully claimingortoclaimthesameoranypartthereof,by,throughorunderGrantor,butnot otherwise. +EXECUTEDthea4//dayof,2014. FMaDuncan,IndependentCo-Executor ofjrQgateofElizaF.Duncan,deceased MClrttMlr ecutor ofthe Estate ofElizaF.Duncan,deceased Page3of4 ACKNOWLEDGMENT THESTATEOFTEXAS § COUNTYOFDENTON § 2014by Thisinstrumentwasacknowledgedbeforemeon deceased JohnFredDuncan,IndependgnIgoBvcutoroftheEstateof t P. El.A-IR Cdf M mt ,c,StateofTexas lionexpIres Mycomm{ ACKNOWLEDGMENT THESTATEOFTEXAS§ COUNTYOF„n)PFcr6g U:I Thi,inst,„mentw„ack.,wl,dg,db,f„,m,,„L&&,20r4by BennyCarlDuncan,IndependentCo-ExecutoroftheEstatqofElizaF.Duncan,deceased UponFilingReturnTo: PropertyTaxBillsTo: TheCityofDenton-EngineeringServices CityofDentonFinanceDepartment Attn:PaulWilliamson 215E.McKinneyStreet 901-ATexasStreet Denton,Texas76201 Denton,Texas76209 Page4of4 EXHIBIT'tA"-toSpecialWarrantyDeed P.O.Box54–Lewisville,Texas75067 once:(972)221-9439–Fax:(972)221-4675 EXHIBIT“A” MAYHILLROAD PARCELMIOO 1.364Acres CityofDenton,DentonCounty,Texas BEINGallthatcertainlot,tractorparceloflandsituatedintheM.E.P.&P.R.R.Co.Survey,AbstractNumber927, CityofDenton,DentonCounty,Texas,andbeingpartofatractoflanddescribedbydeedtoJ.G.Duncanandwife, FrancesDuncan,recordedinVolume509,Page327,DeedRecords,DentonCounty,Texas(D.R.D.C.T.),andbeing moreparticularlydescribedasfollows: BEGINNINGata“PK”nailsetintheexistingMayhillRoadforthesoutheastcornerofsaidDuncantract; THENCESouth89degrees46minutes34secondsWest,withthesouthlineofsaidDuncantract,adistanceof 98.95feettoa1/2inchironrodwithyellowcapstamped“ArthurSurveyingCompany”(A.S.C.)setforcomerin thesouthlineofsaidDuncantractandthenorthlineofatractoflanddescribedbydeedtoCarlK.Clay,recordedin Volume1149,Page518,D.R.D.C.T.; THENCENorth02degrees38rhinutes08secondsEast,overandacrosssaidDuncantract,adistanceof116.47 feettoa1/2inchironrodwithyellowcapstamped“A.S.C.”setforcorneratthebeginningofacurvetotheleft, havingaradiusof9932.50feet; THENCEoverandacrosssaidDuncantract,withsaidcurvetotheleft,havingacentralangleof00degrees47 minutes26seconds,whosechordbearsNorth02degrees14minutes25secondsEastat137.04feet,anarclengthof 137.05feettoa1/2inchironrodwithyellowcapstamped“A.S.C.”setforcorner; THENCENorth01degrees50minutes42secondsEast,overandacrosssaidDuncantract,adistanceof351.72 feettoa1/2inchironrodwithyellowcapstamped“A.S.C.”setforcornerinthenorthlineofsaidDuncantractand theoccupiedsouthlineofBridgesRoad; THENCENorth89degrees22minutes18secondsEast,withthenorthlineofsaidDuncantractandtheoccupied southlineofsaidBridgesRoad,adistanceof99.21feettoa“PK”nailsetforcornerinsaidMayhillRoad; THENCESouth02degrees06minutes31secondsWest,withtheeastlineofsaidDuncantract,andinMayhill Road,adistanceof605.94feettothePOINTOFBEGINNINGandcontaining1.364acresofland,ofwhich0.431 acrelieswithinexistingMayhillRoad. 1) Cl107131-21 ParcelM100 EXHIBITt'B'’-toSpecialWarrantyDeed iCofLot2R,Block3 i.R.F.a GoldenTriangleIndustrialPark Posted Instr.No.2010.Pg.86 ROAD BRIDGES b (ROWdocumentsnothuno N a \\-PK;eFail tEl:> A }/ ” 1000 50100 SCALE:I"=IOO' BearingsshownherronbasedontheCityof DentonGISNetwork NOTES: •I.R.F.=1/2"IronRodFound • I.R.S,=1/2"IronRodSetwith yellowcapstamped"Arthur SurveyingCompany" • BlanketEasementsrecordedinVol. 341,Pg.265&Vol.410,Pg.173as affectedbyVol.113,Pg.130 Cl includethistract. m9.2.jai• Allimprovementsnotshown Lp137.05' hereon. D=OOa47l26't Chd.=N02'14'25'’E J.G.Duncanandwife, 137.04' FrancesDuncan Volume509,Page327 FewParcel0.933ac.(40,646) ExistingImpliedDedication0.431ac.(18,770sq.R.) 1.364Acres(59,416sq.R.) ParcelM100 q' TP&lEa9Hnent +' VoI.372.Pg.46 q' $ q' +’ a AP1k:IFIai/ B CarlK:98, Volume1149,Paje618 A EXHIBIT’'B" th&daydoitl£HwndiftInproperty-icgaHy banbedheruclaaRIbaom4ardtDtlntnof ayhbowlabqtthzenonviabbdjgc#upaIdq l8i€a,8bcxt88uinam,bCxaHl8rylirnocxraiol8, MayhillRoad h„'„'h.wi#phgolhp a&8emen8url£baofw8ytb81hawbeenBhlnd ParcelMI00 ofuaiRa8duval 1.364Acres M.E.P.&P.R.R.Co.Survey, AbstractNumber927 P.O.Box64-Levi8vllle,Texas76087 CityofDenton Office:(872)221-0439Fax:(072)221-4876 E:8tatbll8hed1986 DentonCounty,Texas -2011- BEn DentonCounty CynthiaMitchell CountyClerk Denton,TX76202 70201400069409 InstrumentNumber:2014-69409 As RecordedOn:July16,2014WarrantyDeed Parties:DUNCANJOHNFRED BillablePages:7 To NumberofPages:7 Comment: (PartieslistedaboveareforClerksreferenceonly) *-ExaminedandChargedasFollows:** 50.00 WarrantyDeed 50.00 TotalRecording: ************DONOTREMOVE.THISPAGEISPARTOFTHEINSTRUMENT************ AnyprovisionhereinwhichrestrictstheSale,RentaloruseofthedescribedREALPROPERTY becauseofcolororraceisinvalidandunenforceableunderfederallaw. FileInformation:RecordandReturnTo: DocumentNumber:2014-69409 TITLERESOURCES ReceiptNumber:1185931 WILLCALL RecordedDatefTime:July16,201402:45:41P DENTONTX76202 User/Station:SParr-CashStation3 THESTATEOFTEXAS} COUNTYOFDENTON} IherebycertifythatthisinstrumentwasFILEDintheFIleNumbersequenceonthedate/time printedheron,andwasdulyRECORDEDintheOfficialRecordsofDentonCounty,Texas WtuLL CountyClerk DentonCounty,Texas MiLd I-I\\-/+,#D .,/ a TITLE RESOURCES DATE:August18,2014 GFNO:102562 TO: CITYOFDENTON,TEXAS,aTexasHomeRuleMunicipalCorporation LUANNEOLDHAM 901-A TEXAS STREET DENTON,Texas76209 RE: Owner'sTitlePolicy(TexasFormT-1)regardingthepropertydescribedintheabovereferencedfile asMEP&PRRCO.,Abstract#927,Tract60,DentonCounty,Texasandbeingcommonlyknownas 1000SMAYHILLROAD,DENTON,TEXAS76208(“Property"). WearepleasedtoencloseanOwner'sTitlePolicyNo.103-O-102562fromTITLERESOURCESGUARANTYCOMPANY, issuedinconnectionwiththepurchaseofthepropertydescribedintheTitlePolicy. TheenclosedTitlePolicyisanimportantlegaldocument,sopleasesafeguarditwithyourotherimportantpapers. TITLERESOURCESappreciatestheopportunitytobeofservicetoyouandhopethatyouwillrememberusshouldyou haveafutureneedfortheservicesofatitlecompany. Pleasecallifyouhaveanyfurtherquestionsorifwecanbeoffurtherassistance.ThankyouagainforlettingTITLE RESOURCEShelpyouwiththepurchaseofyourproperty. ORIGINALDOCUMENTENCLOSED GailGreen PolicyProcessor gail@trnt.net Enclosure 525SouthU)op288Suite#125+Denton,Texas76205+Office(940)381-1006+Metro(940)243-2913+Fax(940)898-0121 103.0-102562 OWNER’SPOLICYOFTITLEINSURANCE(FormT-1) Issuedby TitleResourcesGuarantyCompany AnynoticeofclaimandanyothernoticeorstatementinwritingrequiredtobegiventheCompanyunderthis PolicymustbegiventotheCompanyattheaddressshowninSection18oftheConditions. COVEREDRISKS SUBJECTTOTHEEXCLUSIONSFROMCOVERAGE,THEEXCEPTIONSFROMCOVERAGECONTAINEDIN SCHEDULEBANDTHECONDITIONS,TITLERESOURCESGUARANTYCOMPANY,aTexascorporation(the "Company”)insures,asofDateofPolicyand,totheextentstatedinCoveredRisks9and10,afterDateofPolicy,against lossordamage,notexceedingtheAmountofInsurance,sustainedorincurredbytheInsuredbyreasonof: 1.TitlebeingvestedotherthanasstatedinScheduleA. 2.AnydefectinorlienorencumbranceontheTitle.ThisCoveredRiskincludesbutisnotlimitedtoinsuranceagainst lossfrom: (a)AdefectintheTitlecausedby: (i)forgery,fraud,undueinfluence,duress,incompetency,incapacityorimpersonation; (ii)failureofanypersonorEntitytohaveauthorizedatransferorconveyance; (iii)adocumentaffectingTitlenotproperlycreated,executed,witnessed,sealed,acknowledged,notarizedor delivered; (iv)failuretoperformthoseactsnecessarytocreateadocumentbyelectronicmeansauthorizedbylaw; (v)adocumentexecutedunderafalsified,expiredorotherwiseinvalidpowerofattorney; (vi)adocumentnotproperlyfiled,recordedorindexedinthePublicRecordsincludingfailuretoperformthose actsbyelectronicmeansauthorizedbylaw;or (vii)adefectivejudicialoradministrativeproceeding. (b)ThelienofrealestatetaxesorassessmentsimposedontheTitlebyagovernmentalauthoritydueorpayable,but unpaid (c)Anyencroachment,encumbrance,violation,variation,oradversecircumstanceaffectingtheTitlethatwouldbe disclosedbyanaccurateandcompletelandsurveyoftheLand.Theterm“encroachment”includes encroachmentsofexistingimprovementslocatedontheLandontoadjoiningland,andencroachmentsontothe Landofexistingimprovementslocatedonadjoiningland. (d)Anystatutoryorconstitutionalmechanic’s,contractor’s,ormaterialman’slienforlaborormaterialshavingits inceptiononorbeforeDateofPolicy. 3.LackofgoodandindefeasibleTitle. 4.NorightofaccesstoandfromtheLand. 5.Theviolationorenforcementofanylaw,ordinance,permit,orgovernmentalregulation(includingthoserelatingto buildingandzoning)restricting,regulating,prohibitingorrelatingto: (a)theoccupancy,useorenjoymentoftheLand; (b)thecharacter,dimensionsorlocationofanyimprovementerectedontheLand; (c)subdivisionofland;or (d)environmentalprotection ifanotice,describinganypartoftheLand,isrecordedinthePublicRecordssettingforththeviolationorintentionto enforce,butonlytotheextentoftheviolationorenforcementreferredtointhatnotice. 6.AnenforcementactionbasedontheexerciseofagovernmentalpolicepowernotcoveredbyCoveredRisk5ifanotice oftheenforcementaction,describinganypartoftheLand,isrecordedinthePublicRecords,butonlytotheextentof theenforcementreferredtointhatnotice. 7.Theexerciseoftherightsofeminentdomainifanoticeoftheexercise,describinganypartoftheLand,isrecordedin thePublicRecords 8.Anytakingbyagovernmentalbodythathasoccurredandisbindingontherightsofapurchaserforvaluewithout Knowledge. 9.TitlebeingvestedotherthanasstatedinScheduleAorbeingdefective: (a)asaresultoftheavoidanceinwholeorinpart,orfromacourtorderprovidinganalternativeremedy,ofatransfer ofalloranypartofthetitletooranyinterestintheLandoccurringpriortothetransactionvestingTitleasshown inScheduleAbecausethatpriortransferconstitutedafraudulentorpreferentialtransferunderfederal bankruptcy,stateinsolvencyorsimilarcreditors’rightslaws;or (b)becausetheinstrumentoftransfervestingTitleasshowninScheduleAconstitutesa Effective1/03/2014 FormT-1:Owner’sPolicyofTitleInsurance(ForUseOnlyinTexas) TLTAT-1OWNER’SPOLICY(2/1/10)PolicyNo.:103-O-102562 TITLERESOURCESGUARANTYCOMPANY SCHEDULEA TITLERESOURCESGUARANTY NameandAddressofTitleInsuranceCompany: COMPANY 8111LBJFreeway,#1200,Dallas,TX75251 FileNo.:102562 PolicyNo.:103-O-102562 AmountofInsurance: Sl80,000.00 Premium:$1,515.70 DateofPolicy:July16,2014 1.NameofInsured: CITYOFDENTON,TEXAS,aTexasHomeRuleMunicipalCorporation 2.TheestateorinterestintheLandthatisinsuredbythispolicyis: FeeSimple 3.Titleisinsuredasvestedin: CITYOFDENTON,TEXAS,aTexasHomeRuleMunicipalCorporation 4.TheLandreferredtointhispolicyisdescribedasfollows: Beingatractofland(MayhillRoad,RightofWayParcelM100,1.364acres)situatedintheM.E.P.& P.R.R.Co.Survey,AbstractNumber927,CityofDenton,DentonCounty,Texas,andbeingmore particularlydescribedinExhibit“A“andExhibit“B“attachedheretoandmadeaparthereofforall purposes. FileNo.:102562 Page1of3 08TLTA–T-1Owner’sPolicy EXHIBIT’'At'-toSpecialWarrantyDeed A,th„,Sur,eyi„g Cb„IrE. '-Pxva9ssioxrnlLandSurveyors P.O.BoxBi-Lowi8villo,Texa87S067 Qaioo:(ga)221-9139-Fax(922)22jaj67S EXHIBIT“A” MAYIHLLROAD PARCELMIOO 1.3&tAwa CityofDeaton,DentonCounty,Tu8s BEINGallaatattainloltractorpwwloflaIdsituatedindIOM.&P.&P.RRCh.Survey,AtrsawtNtmber927, CityofData&DeatonCoualy,Texas,andbeingpatofaBadofhnddw=bedbydeedtoJ.G.Duncanandwi& I PlaInsDunmn,rmrdedinVolume509,Page327,DeedRnonls,Den&InCOunty,Texas(D.RD.C.T.),and'beirB maepaRicularlydescribedasRHlows: BEGINNINGata"PK”nailsetintheexistingMaybillRoadforthesoutheastcolIInofsaidDwean&get; THENCESouth89degrus46minutes34secondsWest,withthesouthHaeofsaidDunantIna,adistanceof 98.95feettoal£2inchimrndwithyellowcap$bmped''ArthurSlweyhrgCompany”(A.S.C.)sethrmn&in ; thegoldhlineofsaidDuran&adandthenorthlineofatractofImadwdbedlvdeedtoCallKClay,neordedh Volume1149,Pqe518,D.RD.C.T.; THENCENorth02d%rees38fainutna8£ewtdsE®lovnandacrosssddDuncantnct,adjgbnnof116.47 batoa1/2inchironrodwithyellowcepstamped“A.s.a"setbreamatthebeginningofaawetothele& havingaradiusof9932.50feet; THENCEovuandaeros9saidDunan&wbwithsaidcurvetothelea,havingacentralangleof00de©ees47 minutes26seemds,whosechordbemNorth02degrees14minuta25neo&dsButat137.(H&et,ananlerBtbof 137.05fwtoa112hehirutrodwithyellowcopstarrlwd“A.S.C."setRltearaw; THENCENorth01€1ogrqa50minutes42smonthEas&overandMOWsaidDurantna,adistanceof351.72 Bettoa112inchironndwithyellowcapshaped“A.S.C.”setfUreanuinthenorthlineofsaidDuncan&actand th8ualpiedsouthlineofBridgesRoad; THENCENaIa89down22miautw18©eoadgEast,withthenorthliaoofsaidDurantractandtheocctpied southlineofsaidBdd8aRoad,adlstaaceof9921&ettoa'lPK”nailsetfmcornerinsaidMayhiHRoad; nIENCESouth02&nes06minut®31guoIIdSWest,withtheustlineofsaidDunantnct,aadhh&yldn Road,adjgunnof6a5.AfeetbthePOINTOFBEGINNINGandcontainiag1.3818a®oflan4ofwldeb0.431 acnlieswithinexistingMayhillRoad. Cll0713121 PBledMIOO +• Deed EXHIBIT"B"-to l ’(•SECofLot21le8t06kJ GoldenTdongleIndustrialPark Pond In8tr.No.201QbPg.86 BW©bMD /&C) ’A‘ scALnl--tOP BwHawshowhanabudaadIgCIVof DeatoaQISNetwulk NOTES: •IJtF.-12'konRodFalnd •l&s.-la-h,,R,dsdwhh yeUowapslanTed-Althur StweyingComjurV- BlanketBasemm©neonledinVal. 341,Pg.265&Vol416,P&173a affectedbyVol.113,P&130 el hrclude this tna eAllimplowfnea8BatBlown lp137.OF hawk bOP47W' aha=N02'142yB J.a andvIle 137.041 %luna508,Page@7 Newewca0.933aa(40,646) edDediation0.431w.(18,770sq.fl) f335fisq.&) ParoelM10tl V t' €' # q- 4' a' aBIEClay Vbhnn#1148,PbBaBIB •++++o++++e•e EXHIBIT’'B" i:WM MayhillRoad Parcel M100 1.884Aere8 H.E.P.&P.RR.Co.Survey, Ab8traetNumber027 P+oJaoxB4alavj•yIII&nHSTaoBy CityofDenton alawi(872)BBI-9480bn(072)821H87B ? DmtodCounty,Texas -2011- TLTAT-1OWNER’SPOLICY(2/1/10)PolicyNo.:103-O-102562 TITLERESOURCESGUARANTYCOMPANY SCHEDULEB EXCEPTIONSFROMCOVERAGE Thispolicydoesnotinsureagainstlossordamage(andtheCompanywillnotpaycosts,attorneys’fees orexpenses)thatarisebyreasonofthetermsandconditionsoftheleasesandeasements,ifanyshownin ScheduleA,andthefollowingmatters: 1.Thefollowingrestrictivecovenantsofrecorditemizedbelow(theCompanymusteitherinsert specificrecordingdataordeletethisexception): ItemNo.1isherebydeleted. 2.Shortagesinarea. 3. Homesteadorcommunitypropertyorsurvivorshiprights,ifany,ofanyspouseofanyInsured. 4. Anytitlesorrightsassertedbyanyone,includingbutnotlimitedto,persons,thepublic, corporations,governmentsorotherentities, a totidelands,orlandscomprisingtheshoresorbedsofnavigableorperennialriversandstreams, lakes,bays,gulfsoroceans,or b tolandsbeyondthelineoftheharbororbulkheadlinesasestablishedorchangedbyany government,or c.tofilled-inlands,orartificialislands,or d.tostatutorywaterrights,includingriparianrights,or e totheareaextendingfromthelineofmeanlowtidetothelineofvegetation,ortherightof accesstothatareaoreasementalongandacrossthatarea. 5. Standbyfees,taxesandassessmentsbyanytaxingauthorityfortheyear2014,andsubsequent years;andsubsequenttaxesandassessmentsbyanytaxingauthorityforprioryearsduetochangein landusageorownership,butnotthosetaxesorassessmentsforprioryearsbecauseofanexemption grantedtoapreviousownerofthepropertyunderSection11.13,TexasTaxCode,orbecauseof improvementsnotassessedforaprevioustaxyear. 6 Thefollowingmattersandalltermsofthedocumentscreatingorofferingevidenceofthematters (TheCompanymustinsertmattersordeletethisexception): a.EasementexecutedbyMAYHILLSCHOOLtoTEXASPOWER&LIGHTCOMPANY filedNovember12,1936,recordedinVolume262,Page169,DeedRecordsofDenton County,Texas;asshownonsurveydatedJanuary28,2013,preparedbyDouglasL. Arthur,RPLS##357. b.EasementexecutedbyDENTONINDEPENDENTSCHOOLDISTRICTtoTEXAS POWER&LIGHTCOMPANYfiledMay25,1951,recordedinVolume372,Page46, DeedRecordsofDentonCounty,Texas;asshownonsurveydatedJanuary28,2013, preparedbyDouglasL.Arthur,RPLS$4357. c.EasementexecutedbyW.H.BENTLEYandwife,MAYEA.BENTLEYtoSINCLAIR REFININGCOMPANYfiledDecember20,1947,recordedinVolume341,Page265, DeedRecordsofDentonCounty,Texas.(BlanketEasement) FileNo.:102562 Page2of3 08TLTA–T-1Owner’sPolicy TLTAT-1OWNER’SPOLICY(2/1/10)PolicyNo.:103-O-102562 d EasementexecutedbyW.H.BENTLEYtoLONESTARGASCOMPANYfiledMay27, 1955,recordedinVolume410,Page173,DeedRecordsofDentonCounty,Texas;as affectedbyPartialReleasefiledJanuary23,1969,recordedinVolume113,Page130, ReleaseRecordsofDentonCounty,Texas. e. Terms,provisionsandconditionsregardingsubsurfaceformationscommonlyknownand referredtoastheStrawnSandformationandtheCordellSandformation,inDeed executedbyJ.G.DUNCANandwife,FRANCESDUNCANtoLONESTARGAS COMPANY,filedMay10,1967,recordedinVolume550,page564,DeedRecordsof DentonCounty,Texas. f SubjecttoBoundaryLineAgreementexecutedbyandbetweenDONALDGENE BARBERandwife,CLAUDINEBARBERandJ.G.DUNCANandwife,FRANCES DUNCAN,regardingtheSouthboundarylineofsubjectproperty,filedJanuary23,1969, recordedinVolume578,Page439,DeedRecordsofDentonCounty,Texas. g.Powerlinesandpolesinplace;fenceencroachmentacrossproperty;;asshownonsurvey datedJanuary28,2013,preparedbyDouglasL.Arthur,RPLS#4357. h.MineralEstateandInterestdescribedininstrumentfiledJuly16,2014,CC#2014-69409,Real PropertyRecordsofDentonCounty,Texas.(Titletosaidinterestnotcheckedsubsequent thereto.) FileNo.:102562 Page3of3 08TLTA–T-1Owner’sPolicy preferentialtransferunderfederalbankruptcy,stateinsolvencyorsimilarcreditors’rightslaws byreasonofthefailureofitsrecordinginthePublicRecords: (i)tobetimely,or (ii)toimpartnoticeofitsexistencetoapurchaserforvalueorajudgmentorliencreditor. 10.AnydefectinorlienorencumbranceontheTitleorothermatterincludedinCoveredRisks1through9thathasbeen createdorattachedorhasbeenfiledorrecordedinthePublicRecordssubsequenttoDateofPolicyandpriortothe recordingofthedeedorotherinstrumentoftransferinthePublicRecordsthatvestsTitleasshowninScheduleA. TheCompanywillalsopaythecosts,attorneys'feesandexpensesincurredindefenseofanymatterinsuredagainstby thisPolicy,butonlytotheextentprovidedintheConditions. tel TitleResourcesGuarantyCompany J,ud771' By: 525S.Loop288,Ste128 DMIM,TX7@054516 EXCLUSIONSFROMCOVERAGE ThefollowingmattersareexpresslyexcludedfromthecoverageofthispolicyandtheCompanywillnotpaylossor damage,costs,attorneys'feesorexpenseswhicharisebyreasonof: 1.(a) Anylaw,ordinance,permit,orgovernmentalregulation(includingthoserelatingtobuildingandzoning)restricting, regulating,prohibitingorrelatingto: (i)theoccupancy,use,orenjoymentoftheLand; (ii)thecharacter,dimensionsorlocationofanyimprovementerectedontheLand; (ii)subdivisionofland;or (iii)environmentalprotection; ortheeffectofanyviolationoftheselaws,ordinancesorgovernmentalregulations.ThisExclusion1(a)doesnot modifyorlimitthecoverageprovidedunderCoveredRisk5. (b)Anygovernmentalpolicepower.ThisExclusion1(b)doesnotmodifyorlimitthecoverageprovidedunder CoveredRisk6. 2.Rightsofeminentdomain.ThisExclusiondoesnotmodifyorlimitthecoverageprovidedunderCoveredRisk7or8. 3.Defects,liens,encumbrances,adverseclaimsorothermatters: (a)created,suffered,assumedoragreedtobytheInsuredClaimant; (b)notKnowntotheCompany,notrecordedinthePublicRecordsatDateofPolicy,butKnowntotheInsured ClaimantandnotdisclosedinwritingtotheCompanybytheInsuredClaimantpriortothedatetheInsured ClaimantbecameanInsuredunderthispolicy; (c)resuftinginnolossordamagetotheInsuredClaimant; (d)attachingorcreatedsubsequenttoDateofPolicy(however,thisdoesnotmodifyorlimitthecoverageprovided underCoveredRisk9and10);or (e)resultinginlossordamagethatwouldnothavebeensustainediftheInsuredClaimanthadpaidvalueforthe Title 4.Anyclaim,byreasonoftheoperationoffederalbankruptcy,stateinsolvency,orsimilarcreditors’rightslaws,thatthe transactionvestingtheTitleasshowninScheduleA,is: (a)afraudulentconveyanceorfraudulenttransfer;or (b)apreferentialtransferforanyreasonnotstatedinCoveredRisk9ofthispolicy. 5.AnylienontheTitleforrealestatetaxesorassessmentsimposedbygovernmentalauthorityandcreatedorattaching betweenDateofPolicyandthedateofrecordingofthedeedorotherinstrumentoftransferinthePublicRecordsthat vestsTitleasshowninScheduleA. 6.Therefusalofanypersontopurchase,leaseorlendmoneyontheestateorinterestcoveredherebyintheland describedinScheduleAbecauseofUnmarketableTitle. Effective1/03/2014 FormT-1:Owner’sPolicyofTitleInsurance(ForUseOnlyinTexas) CONDITIONS 1.DEFINITIONOFTERMS. Thefollowingtermswhenusedinthispolicymean: (a)“AmountofInsurance”:theamountstatedinScheduleA,asmaybeincreasedordecreasedbyendorsementtothis policy,increasedbySection8(b),ordecreasedbySections10and11oftheseConditions. (b)"DateofPolicy”:Thedatedesignatedas“DateofPolicy”inScheduleA. (c)“Entity”:Acorporation,partnership,trust,limitedliabilitycompanyorothersimilarlegalentity (d)“Insured":theInsurednamedinScheduleA. (i)Theterm"Insured"alsoincludes: (A)successorstotheTitleoftheInsuredbyoperationoflawasdistinguishedfrompurchase,includingheirs, devisees,survivors,personalrepresentativesornextofkin; (B)successorstoanInsuredbydissolution,merger,consolidation,distributionorreorganization; (C)successorstoanInsuredbyitsconversiontoanotherkindofEntity; (D)agranteeofanInsuredunderadeeddeliveredwithoutpaymentofactualvaluableconsiderationconveying theTitle (1)ifthestock,shares,memberships,orotherequityinterestsofthegranteearewholly-ownedbythenamed Insured (2)ifthegranteewhollyownsthenamedInsured, (3)ifthegranteeiswholly-ownedbyanaffiliatedEntityofthenamedInsured,providedtheaffiliatedEntityand thenamedInsuredarebothwholly-ownedbythesamepersonorEntity,or (4)ifthegranteeisatrusteeorbeneficiaryofatrustcreatedbyawritteninstrumentestablishedbytheInsured namedinScheduleAforestateplanningpurposes (ii)Withregardto(A),(B),(C)and(D)reserving,however,allrightsanddefensesastoanysuccessorthatthe CompanywouldhavehadagainstanypredecessorInsured. (e)"InsuredClaimant":anInsuredclaiminglossordamage. (f)"Knowledge"or"Known":actualknowledge,notconstructiveknowledgeornoticethatmaybeimputedtoanInsured byreasonofthePublicRecordsoranyotherrecordsthatimpartconstructivenoticeofmattersaffectingtheTitle. (g)"Land":thelanddescribedinScheduleA,andaffixedimprovementsthatbylawconstituterealproperty.Theterm "Land”doesnotincludeanypropertybeyondthelinesoftheareadescribedinScheduleA,noranyright,title, interest,estateoreasementinabuttingstreets,roads,avenues,alleys,lanes,waysorwaterways,butthisdoesnot modifyorlimittheextentthatarightofaccesstoandfromtheLandisinsuredbythispolicy. (h)"Mortgage":mortgage,deedoftrust,trustdeed,orothersecurityinstrument,includingoneevidencedbyelectronic meansauthorizedbylaw. (i)"PublicRecords":recordsestablishedunderstatestatutesatDateofPolicyforthepurposeofimparting constructivenoticeofmattersrelatingtorealpropertytopurchasersforvalueandwithoutKnowledge.Withrespect toCoveredRisk5(d),"PublicRecords"shallalsoincludeenvironmentalprotectionliensfiledintherecordsofthe clerkoftheUnitedStatesDistrictCourtforthedistrictwheretheLandislocated. a)“Title”:theestateorinterestdescribedinScheduleA. (k)"UnmarketableTitle”:Titleaffectedbyanallegedorapparentmatterthatwouldpermitaprospectivepurchaseror lesseeoftheTitleorlenderontheTitletobereleasedfromtheobligationtopurchase,leaseorlendifthereisa contractualconditionrequiringthedeliveryofmarketabletitle. 2.CONTINUATIONOFINSURANCE. ThecoverageofthispolicyshallcontinueinforceasofDateofPolicyinfavorofanInsured,butonlysolongasthe InsuredretainsanestateorinterestintheLand,orholdsanobligationsecuredbyapurchasemoneyMortgagegivenbya purchaserfromtheInsured,oronlysolongastheInsuredshallhaveliabilitybyreasonofwarrantiesinanytransferor conveyanceoftheTitle.ThispolicyshallnotcontinueinforceinfavorofanypurchaserfromtheInsuredofeither (i)anestateorinterestintheLand,or(ii)anobligationsecuredbyapurchasemoneyMortgagegiventotheInsured. 3.NOTICEOFCLAIMTOBEGIVENBYINSUREDCLAIMANT. TheInsuredshallnotifytheCompanypromptlyinwriting (i)incaseofanylitigationassetforthinSection5(a)below,or (ii)incaseKnowledgeshallcometoanInsuredhereunderofanyclaimoftitleorinterestthatisadversetotheTitle, asinsured,andthatmightcauselossordamageforwhichtheCompanymaybeliablebyvirtueofthispolicy.If theCompanyisprejudicedbythefailureoftheInsuredClaimanttoprovidepromptnotice,theCompany'sliability totheInsuredClaimantunderthepolicyshallbereducedtotheextentoftheprejudice. When,aftertheDateofthePolicy,theInsurednotifiestheCompanyasrequiredhereinofalien,encumbrance,adverse claimorotherdefectinTitleinsuredbythispolicythatisnotexcludedorexceptedfromthecoverageofthispolicy,the Companyshallpromptlyinvestigatethechargetodeterminewhetherthelien,encumbrance,adverseclaimordefector othermatterisvalidandnotbarredbylaworstatute.TheCompanyshallnotifytheInsuredinwriting,withinareasonable time,ofitsdeterminationastothevalidityorinvalidityoftheInsured'sclaimorchargeunderthepolicy.IftheCompany concludesthatthelien,encumbrance,adverseclaimordefectisnotcoveredbythispolicy,orwasotherwiseaddressedin Effective1/03/2014 FormT-1:Owner’sPolicyofTitleInsurance(ForUseOnlyinTexas) theclosingofthetransactioninconnectionwithwhichthispolicywasissued,theCompanyshallspecificallyadvisethe Insuredofthereasonsforitsdetermination.IftheCompanyconcludesthatthelien,encumbrance,adverseclaimordefect isvalid,theCompanyshalltakeoneofthefollowingactions:(i)institutethenecessaryproceedingstoclearthelien, encumbrance,adverseclaimordefectfromtheTitleasinsured;(ii)indemnifytheInsuredasprovidedinthispolicy;(iii) uponpaymentofappropriatepremiumandchargestherefore,issuetotheInsuredClaimantortoasubsequentowner, mortgageeorholderoftheestateorinterestintheLandinsuredbythispolicy,apolicyoftitleinsurancewithoutexception forthelien,encumbrance,adverseclaimordefect,saidpolicytobeinanamountequaltothecurrentvalueoftheLand or,ifaloanpolicy,theamountoftheloan;(iv)indemnifyanothertitleinsurancecompanyinconnectionwithitsissuanceof apolicy(ies)oftitleinsurancewithoutexceptionforthelien,encumbrance,adverseclaimordefect;(v)secureareleaseor otherdocumentdischargingthelien,encumbrance,adverseclaimordefect;or(vi)undertakeacombinationof(i)through (v)herein 4.PROOFOFLOSS. IntheeventtheCompanyisunabletodeterminetheamountoflossordamage,theCompanymay,atitsoption,require asaconditionofpaymentthattheInsuredClaimantfurnishasignedproofofloss.Theproofoflossmustdescribethe defect,lien,encumbranceorothermatterinsuredagainstbythispolicythatconstitutesthebasisoflossordamageand shallstate,totheextentpossible,thebasisofcalculatingtheamountofthelossordamage. 5.DEFENSEANDPROSECUTIONOFACTIONS. (a)UponwrittenrequestbytheInsured,andsubjecttotheoptionscontainedinSections3and7oftheseConditions, theCompany,atitsowncostandwithoutunreasonabledelay,shallprovideforthedefenseofanInsuredin litigationinwhichanythirdpartyassertsaclaimcoveredbythispolicyadversetotheInsured.Thisobligationis limitedtoonlythosestatedcausesofactionallegingmattersinsuredagainstbythispolicy.TheCompanyshall havetherighttoselectcounselofitschoice(subjecttotherightoftheInsuredtoobjectforreasonablecause)to representtheInsuredastothosestatedcausesofaction.Itshallnotbeliableforandwillnotpaythefeesofany othercounsel.TheCompanywillnotpayanyfees,costsorexpensesincurredbytheInsuredinthedefenseof thosecausesofactionthatallegemattersnotinsuredagainstbythispolicy. (b)TheCompanyshallhavetheright,inadditiontotheoptionscontainedinSections3and7,atitsowncost,to instituteandprosecuteanyactionorproceedingortodoanyotheractthatinitsopinionmaybenecessaryor desirabletoestablishtheTitle,asinsured,ortopreventorreducelossordamagetotheInsured.TheCompany maytakeanyappropriateactionunderthetermsofthispolicy,whetherornotitshallbeliabletotheInsured.The exerciseoftheserightsshallnotbeanadmissionofliabilityorwaiverofanyprovisionofthispolicy.IftheCompany exercisesitsrightsunderthissubsection,itmustdosodiligently. (c)WhenevertheCompanybringsanactionorassertsadefenseasrequiredorpermittedbythispolicy,theCompany maypursuethelitigationtoafinaldeterminationbyacourtofcompetentjurisdictionanditexpresslyreservesthe right,initssolediscretion,toappealfromanyadversejudgmentororder. 6.DUTYOFINSUREDCLAIMANTTOCOOPERATE. (a)inallcaseswherethispolicypermitsorrequirestheCompanytoprosecuteorprovideforthedefenseofanyaction orproceedingandanyappeals,theInsuredshallsecuretotheCompanytherighttosoprosecuteorprovide defenseintheactionorproceeding,includingtherighttouse,atitsoption,thenameoftheInsuredforthispurpose. WheneverrequestedbytheCompany,theInsured,attheCompany'sexpense,shallgivetheCompanyall reasonableaid(i)insecuringevidence,obtainingwitnesses,prosecutingordefendingtheactionorproceeding,or effectingsettlement,and(ii)inanyotherlawfulactthatintheopinionoftheCompanymaybenecessaryor desirabletoestablishtheTitleoranyothermatterasinsured.IftheCompanyisprejudicedbythefailureofthe Insuredtofurnishtherequiredcooperation,theCompany’sobligationstotheInsuredunderthepolicyshall terminate,includinganyliabilityorobligationtodefend,prosecute,orcontinueanylitigation,withregardtothe matterormattersrequiringsuchcooperation. (b)TheCompanymayreasonablyrequiretheInsuredClaimanttosubmittoexaminationunderoathbyanyauthorized representativeoftheCompanyandtoproduceforexamination,inspectionandcopying,atsuchreasonabletimes andplacesasmaybedesignatedbytheauthorizedrepresentativeoftheCompany,allrecords,inwhatever mediummaintained,includingbooks,ledgers,checks,memoranda,correspondence,reports,e-mails,disks,tapes, andvideoswhetherbearingadatebeforeorafterDateofPolicy,thatreasonablypertaintothelossordamage. Further,ifrequestedbyanyauthorizedrepresentativeoftheCompany,theInsuredClaimantshallgrantits permission,inwriting,foranyauthorizedrepresentativeoftheCompanytoexamine,inspectandcopyallofthese recordsinthecustodyorcontrolofathirdpartythatreasonablypertaintothelossordamage.Allinformation designatedasconfidentialbytheInsuredClaimantprovidedtotheCompanypursuanttothisSectionshallnotbe disclosedtoothersunless,inthereasonablejudgmentoftheCompany,itisnecessaryintheadministrationofthe claim.FailureoftheInsuredClaimanttosubmitforexaminationunderoath,produceanyreasonablyrequested informationorgrantpermissiontosecurereasonablynecessaryinformationfromthirdpartiesasrequiredinthis subsection,unlessprohibitedbylaworgovernmentalregulation,shallterminateanyliabilityoftheCompanyunder thispolicyastothatclaim. 7.OPTIONSTOPAYOROTHERWISESETrLECLAIMS;TERMINATIONOFLIABILITY. Incaseofaclaimunderthispolicy,theCompanyshallhavethefollowingadditionaloptions: Effective1/03/2014 FarmT-1:Owner'sPolicyofTitleInsurance(ForUseOnlyinTexas) (a)ToPayorTenderPaymentoftheAmountofInsurance. TopayortenderpaymentoftheAmountofInsuranceunderthispolicytogetherwithanycosts,attorneys'feesand expensesincurredbytheInsuredClaimantthatwereauthorizedbytheCompanyuptothetimeofpaymentor tenderofpaymentandthattheCompanyisobligatedtopay.UpontheexercisebytheCompanyofthisoption,all liabilityandobligationsoftheCompanytotheInsuredunderthispolicy,otherthantomakethepaymentrequiredin thissubsection,shallterminate,includinganyliabilityorobligationtodefend,prosecute,orcontinueanylitigation. (b)ToPayorOtherwiseSettleWithPartiesOtherthantheInsuredorWiththeInsuredClaimant. (i)topayorotherwisesettlewithotherpartiesfororinthenameofanInsuredClaimantanyclaiminsuredagainst underthispolicy.Inaddition,theCompanywillpayanycosts,attorneys'feesandexpensesincurredbythe InsuredClaimantthatwereauthorizedbytheCompanyuptothetimeofpaymentandthattheCompanyis obligatedtopay;or (ii)topayorotherwisesettlewiththeInsuredClaimantthelossordamageprovidedforunderthispolicy,together withanycosts,attorneys'feesandexpensesincurredbytheInsuredClaimantthatwereauthorizedbythe CompanyuptothetimeofpaymentandthattheCompanyisobligatedtopay.UpontheexercisebytheCompany ofeitheroftheoptionsprovidedforinsubsections(b)(i)or(ii),theCompany'sobligationstotheInsuredunderthis policyfortheclaimedlossordamage,otherthanthepaymentsrequiredtobemade,shallterminate,including anyliabilityorobligationtodefend,prosecuteorcontinueanylitigation. 8.DETERMINATIONANDEXTENTOFLIABILITY. ThispolicyisacontractofindemnityagainstactualmonetarylossordamagesustainedorincurredbytheInsured Claimantwhohassufferedlossordamagebyreasonofmattersinsuredagainstbythispolicy. (a)TheextentofliabilityoftheCompanyforlossordamageunderthispolicyshallnotexceedthelesserof: (i)theAmountofInsurance;or (ii)thedifferencebetweenthevalueoftheTitleasinsuredandthevalueoftheTitlesubjecttotheriskinsured againstbythispolicy. (b)iftheCompanypursuesitsrightsunderSection3or5andisunsuccessfulinestablishingtheTitle,asinsured, (i)theAmountofInsuranceshallbeincreasedby10%,and (ii)theInsuredClaimantshallhavetherighttohavethelossordamagedeterminedeitherasofthedatetheclaim wasmadebytheInsuredClaimantorasofthedateitissettledandpaid. (c)inadditiontotheextentofliabilityunder(a)and(b),theCompanywillalsopaythosecosts,attorneys'feesand expensesincurredinaccordancewithSections5and7oftheseConditions. 9.LIMITATIONOFLIABILITY. (a)iftheCompanyestablishestheTitle,orremovestheallegeddefect,lienorencumbrance,orcuresthelackofaright ofaccesstoorfromtheLand,allasinsured,ortakesactioninaccordancewithSection3or7,inareasonably diligentmannerbyanymethod,includinglitigationandthecompletionofanyappeals,itshallhavefullyperformed itsobligationswithrespecttothatmatterandshallnotbeliableforanylossordamagecausedtotheInsured. (b)intheeventofanylitigation,includinglitigationbytheCompanyorwiththeCompany'sconsent,theCompanyshall havenoliabilityforlossordamageuntiltherehasbeenafinaldeterminationbyacourtofcompetentjurisdiction, anddispositionofallappeals,adversetotheTitle,asinsured. (c)TheCompanyshallnotbeliableforlossordamagetotheInsuredforliabilityvoluntarilyassumedbytheInsuredin settlinganyclaimorsuitwithoutthepriorwrittenconsentoftheCompany. 10.REDUCTIONOFINSURANCE;REDUCTIONORTERMINATIONOFLIABILITY. Allpaymentsunderthispolicy,exceptpaymentsmadeforcosts,attorneys’feesandexpenses,shallreducetheAmount ofInsurancebytheamountofthepayment. 11.LIABILITYNONCUMULATIVE. TheAmountofInsuranceshallbereducedbyanyamounttheCompanypaysunderanypolicyinsuringaMortgageto whichexceptionistakeninScheduleBortowhichtheInsuredhasagreed,assumed,ortakensubjectorwhichis executedbyanInsuredafterDateofPolicyandwhichisachargeorlienontheTitle,andtheamountsopaidshallbe deemedapaymenttotheInsuredunderthispolicy. 12.PAYMENTOFLOSS. WhenliabilityandtheextentoflossordamagehavebeendefinitelyfixedinaccordancewiththeseConditions,the paymentshallbemadewithin30days. 13.RIGHTSOFRECOVERYUPONPAYMENTORSETrLEMENT. (a)WhenevertheCompanyshallhavesettledandpaidaclaimunderthispolicy,itshallbesubrogatedandentitledto therightsoftheInsuredClaimantintheTitleandallotherrightsandremediesinrespecttotheclaimthattheInsured Claimanthasagainstanypersonorproperty,totheextentoftheamountofanyloss,costs,attorneys’feesand expensespaidbytheCompany.IfrequestedbytheCompany,theInsuredClaimantshallexecutedocumentsto evidencethetransfertotheCompanyoftheserightsandremedies.TheInsuredClaimantshallpermittheCompany tosue,compromiseorsettleinthenameoftheInsuredClaimantandtousethenameoftheInsuredClaimantinany transactionorlitigationinvolvingtheserightsandremedies.Ifapaymentonaccountofaclaimdoesnotfullycover thelossoftheInsuredClaimant,theCompanyshalldefertheexerciseofitsrighttorecoveruntilaftertheInsured Claimantshallhaverecovereditsloss. Effective1/03/2014 FormT-1:Owner’sPolicyofTitleInsurance(ForUseOnlyinTexas) (b)TheCompany'srightofsubrogationincludestherightsoftheInsuredtoindemnities,guaranties,otherpoliciesof insuranceorbonds,notwithstandinganytermsorconditionscontainedinthoseinstrumentsthataddresssubrogation rights 14.ARBITRATION. EithertheCompanyortheInsuredmaydemandthattheclaimorcontroversyshallbesubmittedtoarbitrationpursuantto theTitleInsuranceArbitrationRulesoftheAmericanLandTitleAssociation(“Rules”).ExceptasprovidedintheRules, thereshallbenojoinderorconsolidationwithclaimsorcontroversiesofotherpersons.Arbitrablemattersmayinclude,but arenotlimitedto,anycontroversyorclaimbetweentheCompanyandtheInsuredarisingoutoforrelatingtothispolicy, anyserviceinconnectionwithitsissuanceorthebreachofapolicyprovision,ortoanyothercontroversyorclaimarising outofthetransactiongivingrisetothispolicy.AllarbitrablematterswhentheAmountofInsuranceis$2,000,000orless shallbearbitratedattheoptionofeithertheCompanyortheInsured,unlesstheInsuredisanindividualperson(as distinguishedfromanEntity).AllarbitrablematterswhentheAmountofInsuranceisinexcessof$2,000,000shallbe arbitratedonlywhenagreedtobyboththeCompanyandtheInsured. ArbitrationpursuanttothispolicyandundertheRulesshallbebindingupontheparties.Judgmentupontheaward renderedbytheArbitrator(s)maybeenteredinanycourtofcompetentjurisdiction. 15.LIABILITYLIMITEDTOTHISPOLICY;POLICYENTIRECONTRACT. (a)Thispolicytogetherwithallendorsements,ifany,attachedtoitbytheCompanyistheentirepolicyandcontract betweentheInsuredandtheCompany.Ininterpretinganyprovisionofthispolicy,thispolicyshallbeconstruedasa whole (b)AnyclaimoflossordamagethatarisesoutofthestatusoftheTitleorbyanyactionassertingsuchclaim,shallbe restrictedtothispolicy. (c)Anyamendmentoforendorsementtothispolicymustbeinwritingandauthenticatedbyanauthorizedperson,or expresslyincorporatedbyScheduleAofthispolicy. (d)Eachendorsementtothispolicyissuedatanytimeismadeapartofthispolicyandissubjecttoallofitstermsand provisions.Exceptastheendorsementexpresslystates,itdoesnot(i)modifyanyofthetermsandprovisionsofthe policy,(ii)modifyanypriorendorsement,(iii)extendtheDateofPolicyor(iv)increasetheAmountofInsurance. EachCommitment,endorsementorotherform,orprovisionintheSchedulestothispolicythatreferstoaterm definedinSection1oftheConditionsshallbedeemedtorefertothetermregardlessofwhetherthetermis capitalizedintheCommitment,endorsementorotherform,orSchedule.EachCommitment,endorsementorother form,orprovisionintheSchedulesthatreferstotheConditionsandStipulationsshallbedeemedtorefertothe Conditionsofthispolicy. 16.SEVERABILITY. Intheeventanyprovisionofthispolicy,inwholeorinpart,isheldinvalidorunenforceableunderapplicablelaw,the policyshallbedeemednottoincludethatprovisionorsuchpartheldtobeinvalidandallotherprovisionsshallremainin fullforceandeffect. 17.CHOICEOFLAW;FORUM. (a)ChoiceofLaw:TheInsuredacknowledgestheCompanyhasunderwrittentheriskscoveredbythispolicyand determinedthepremiumchargedthereforinrelianceuponthelawaffectinginterestsinrealpropertyandapplicabletothe interpretation,rights,remediesorenforcementof policiesoftitleinsuranceofthejurisdictionwheretheLandislocated.Therefore,thecourtoranarbitratorshallapplythe lawofthejurisdictionwheretheLandislocatedtodeterminethevalidityofclaimsagainsttheTitlethatareadversetothe Insured,andininterpretingandenforcingthetermsofthispolicy.Inneithercaseshallthecourtorarbitrator applyitsconflictsoflawsprinciplestodeterminetheapplicablelaw. (b)ChoiceofForum:AnylitigationorotherproceedingbroughtbytheInsuredagainsttheCompanymustbefiledonlyina stateorfederalcourtwithintheUnitedStatesofAmericaoritsterritorieshavingappropriatejurisdiction. 18.NOTICES,WHERESENT. AnynoticeofclaimandanyothernoticeorstatementinwritingrequiredtobegiventheCompanyunderthisPolicymust begiventotheCompanyat8111LBJFreeway,Suite1200,Dallas,Texas75251 Effective1/03/2014 FormT-1:Owner’sPolicyofTitleInsurance(ForUseOnlyinTexas) TITLE RESOURCES Q AVISOIMPORTANTE IMPORTANTNOTICE Paraobtenerinformacionoparasometer Toobtaininformationormakeacomplaint: unaqueja: Ustedpuedellamaralnumerodetelephono YoumaycallTitleResourcesGuaranty Company’stoll-freetelephonenumberfor gratisdeTitleResourcesGuaranty informationortomakeacomplaintat: Company’sparainformacionoparasometer unaquejaal 1-800-526-8018 1-800-526-8018 UstedtambienpuedeescribiraTitle YoumayalsowritetoTitleResources ResourcesGuarantyCompanyat: GuarantyCompanyat: Attention:ClaimsDepartment Attention:ClaimsDepartment 8111LBJFreeway,Suite1200 8111LBJFreeway,Suite1200 Dallas,TX75251Dallas,TX75251 PuedecomunicarseconelDepartamentode YoumaycontacttheTexasDepartmentof Insurancetoobtaininformationon SegurosdeTexasparaobtenerinformacion acercadecompanias,coberturas,derechos companies,coverages,rightsorcomplaints at oquejasaI: 1-800-252-3439 1-800-252-3439 PuedeescribiralDepartamentodeSeguros YoumaywritetheTexasDepartmentof Insurance:deTexas: p.O.Box149104 p.O.Box149104 Austin,TX78714-9104 Austin,TX78714-9104 Fax:(512)475-1771 Fax:(512)475-1771 Web:http://www.tdi.state.tx.us Web:http://www.tdi.state.tx.us E-mail:ConsumerProtection@tdi.state.tx.us E-mail:ConsumerProtection@tdi.state.tx.us DISPUTASSOBREPRIMASO PREMIUMORCLAIMDISPUTES: RECLAMOS: Shouldyouhaveadisputeconcerningyour Sitieneunadisputaconcernienteasuprima premiumoraboutaclaimyoushould oaunreclamo,debecomunicarseconla contactthecompanyfirst.Ifthedisputeis notresolved,youmaycontacttheTexascompaniaprimero.Sinoseresuelvela DepartmentofInsurance. disputa,puedeentoncescomunicarseconel departamento(TDI). ATTACHTHISNOTICETOYOUR UNAESTEAVISOASUPOLIZA: Esteavisoessoloparapropositode POLICY:Thisnoticeisforinformationonly anddoesnotbecomeapartorconditionofinformacionynoseconvierteenparteo theattacheddocument. condiciondeldocumentoadjunto. 28TAC§l.601(a)(3) TitleResourcesGuarantyCompany PrivacyPolicyNotice PURPOSEOFTHISNOTICE TitleVoftheGramm-Leach-BlileyAct(GLBA)generallyprohibitsanyfinancialinstitution,directlyor throughitsaffiliates,fromsharingnonpublicpersonalinformationaboutyouwithanonaffiliatedthird partyunlesstheinstitutionprovidesyouwithanoticeofitsprivacypoliciesandpractices,suchasthe typeofinformationthatitcollectsaboutyouandthecategoriesofpersonsorentitiestowhomitmay bedisclosed.IncompliancewiththeGLBA,weareprovidingyouwiththisdocument,whichnotifies youoftheprivacypoliciesandpracticesofTitleResourcesGuarantyCompany. Wemaycollectnonpublicpersonalinformationaboutyoufromthefollowingsources: •Informationwereceivefromyousuchasonapplicationsorotherforms. •Informationaboutyourtransactionswesecurefromourfiles,orfromouraffiliatesorothers. •Informationwereceivefromaconsumerreportingagency. •Informationthatwereceivefromothersinvolvedinyourtransaction,suchastherealestate agentorlender. UnlessitisspecificallystatedotherwiseinanamendedPrivacyPolicy Notice,noadditionalnonpublicpersonalinformationwillbecollectedabout you Wemaydiscloseanyoftheaboveinformationthatwecollectaboutourcustomersorformer customerstoouraffiliatesortononaffiliatedthirdpartiesaspermittedbylaw. Wealsomaydisclosethisinformationaboutourcustomersorformercustomerstothefollowingtypes ofnonaffiliatedcompaniesthatperformmarketingservicesonourbehalforwithwhomwehavejoint marketingagreements: •Financialserviceproviderssuchascompaniesengagedinbanking,consumerfinance,securities andinsurance •Non-financialcompaniessuchasenvelopestuffersandotherfulfillmentserviceproviders. WEDONOTDISCLOSEANYNONPUBLICPERSONALINFORMATION ABOUTYOUWITHANYONEFORANYPURPOSETHATISNOT SPECIFICALLYPERMITTEDBYLAW. Werestrictaccesstononpublicpersonalinformationaboutyoutothoseemployeeswhoneedtoknow thatinformationinordertoprovideproductsorservicestoyou.Wemaintainphysical,electronic,and proceduralsafeguardsthatcomplywithfederalregulationstoguardyournonpublicpersonal information. TITLERESOURCES,LLC PrivacyPolicyNotice PURPOSEOFTHISNOTICE TitleVoftheGramm-Leach-BlileyAct(GLBA)generallyprohibitsanyfinancialinstitution, directlyorthroughitsaffiliates,fromsharingnonpublicpersonalinformationaboutyouwitha nonaffiliatedthirdpartyunlesstheinstitutionprovidesyouwithanoticeofitsprivacypolicies andpractices,suchasthetypeofinformationthatitcollectsaboutyouandthecategoriesof personsorentitiestowhomitmaybedisclosed.IncompliancewiththeGLBA,weare providingyouwiththisdocument,whichnotifiesyouoftheprivacypoliciesandpracticesof TITLERESOURCES,LLC.(“TITLERESOURCES”). Wemaycollectnonpublicpersonalinformationaboutyoufromthefollowingsources: •Informationwereceivefromyou,suchasonapplicationsorotherforms. •Informationaboutyourtransactionswesecurefromourfiles,orfromouraffiliatesorothers. •Informationwereceivefromaconsumer-reportingagency. •Informationthatwereceivefromothersinvolvedinyourtransaction,suchastherealestate agentorlender. UnlessitisspecificallystatedotherwiseinanamendedPrivacyPolicyNotice,noadditional nonpublicpersonalinformationwillbecollectedaboutyou. Wemaydiscloseanyoftheaboveinformationthatwecollectaboutourcustomersorformer customerstoouraffiliatesortononaffiliatedthirdpartiesaspermittedbylaw. Wealsomaydisclosethisinformationaboutourcustomersorformercustomerstothefollowing typesofnonaffiliatedcompaniesthatperformmarketingservicesonourbehalforwithwhomwe havejointmarketingagreements: •Financialserviceproviderssuchascompaniesengagedinbanking,consumerfinance, securitiesandinsurance. •Non-financialcompaniessuchasenvelopestuffersandotherfulfillmentserviceproviders. WEDONOTDISCLOSEANYNONPUBLICPERSONALINFORMATIONABOUT YOUWITHANYONEFORANYPURPOSETHATISNOTSPECIFICALLY PERMITTEDBYLAW. Werestrictaccesstononpublicpersonalinformationaboutyoutothoseemployeeswhoneedto knowthatinformationinordertoprovideproductsorservicestoyou.Wemaintainphysical, electronic,andproceduralsafeguardsthatcomplywithfederalregulationstoguardyour nonpublicpersonalinformation. TitleResourcesGuarantyCompany PrivacyPolicyNotice PURPOSEOFTHISNOTICE TitleVoftheGramm-Leach-BlileyAct(GLBA)generallyprohibitsanyfinancialinstitution, directlyorthroughitsaffiliates,fromsharingnonpublicpersonalinformationaboutyouwitha nonaffiliatedthirdpartyunlesstheinstitutionprovidesyouwithanoticeofitsprivacypolicies andpractices,suchasthetypeofinformationthatitcollectsaboutyouandthecategoriesof personsorentitiestowhomitmaybedisclosed.IncompliancewiththeGLBA,weare providingyouwiththisdocument,whichnotifiesyouoftheprivacypoliciesandpracticesof TitleResourcesGuarantyCompany Wemaycollectnonpublicpersonalinformationaboutyoufromthefollowingsources: •Informationwereceivefromyou,suchasonapplicationsorotherforms. •Informationaboutyourtransactionswesecurefromourfiles,orfromouraffiliatesorothers. •Informationwereceivefromaconsumerreportingagency. •Informationthatwereceivefromothersinvolvedinyourtransaction,suchastherealestate agentorlender. UnlessitisspecificallystatedotherwiseinanamendedPrivacyPolicyNotice,noadditional nonpublicpersonalinformationwillbecollectedaboutyou. Wemaydiscloseanyoftheaboveinformationthatwecollectaboutourcustomersorformer customerstoouraffiliatesortononaffiliatedthirdpartiesaspermittedbylaw. Wealsomaydisclosethisinformationaboutourcustomersorformercustomerstothefollowing typesofnonaffiliatedcompaniesthatperformmarketingservicesonourbehalforwithwhomwe havejointmarketingagreements: •Financialserviceproviderssuchascompaniesengagedinbanking,consumerfinance, securitiesandinsurance. •Non-financialcompaniessuchasenvelopestuffersandotherfulfillmentserviceproviders. WEDONOTDISCLOSEANYNONPUBLICPERSONALINFORMATIONABOUT YOUWITHANYONEFORANYPURPOSETHATISNOTSPECIFICALLY PERMITTEDBYLAW. Werestrictaccesstononpublicpersonalinformationaboutyoutothoseemployeeswhoneedto knowthatinformationinordertoprovideproductsorservicestoyou.Wemaintainphysical, electronic,andproceduralsafeguardsthatcomplywithfederalregulationstoguardyour nonpublicpersonalinformation. G.F.Number102562 IMPORTANTNOTICE Toobtaininformationormakeacomplaint: 1.Youmaycontactyourtitleinsuranceagentat940-381-1006. 2.YoumaycallTitleResourcesGuarantyCompany’stoll-freetelephonenumberforinformationorto makeacomplaint:TitleResourcesGuarantyCompany. 3 YoumayalsowritetoTitleResourcesGuarantyCompanyatTitleResourcesGuarantyCompany. 4 YoumaycontacttheTexasDepartmentofInsurancetoobtaininformationoncompanies, coverages,rightsorcomplaintsat1-800-252-3439. 5 YoumaywritetheTexasDepartmentofInsurance, P.O.Box149104 Austin,TX78714-9104 Fax:(512)475-1771 Web:http://www.tdi.state.tx.us E-mail:ConsumerProtection@.tdi.state.tx.us PREMIUMORCLAIMDISPUTES; Shouldyouhaveadisputeconcerningyourpremiumoraboutaclaimyoushouldcontactthetitleinsurance agentfirst.Ifthedisputeisnotresolved,youmaycontacttheTexasDepartmentofInsurance. ATTACHTHISNOTICETOYOURPOLICY: Thisnoticeisforinformationonlyanddoesnotbecomeapartorconditionoftheattacheddocument. AVISOIMPORTANTE Paraobtenerinformacionoparasometerunaqueja: 1.Puedecomunicarseconsuagentedesegurodetituloal940-381-1006. 2.UstedpuedellamaralnumerodetelefonogratisdeTitleResourcesGuarantyCompany'spara informacionoparasometerunaquejaaITitleResourcesGuarantyCompany. 3 UstedtambienpuedeescribiraTitleResourcesGuarantvComDanv:TitleResourcesGuarantv Company. 4 PuedecomunicarseconelDepartamentodeSegurosdeTexasparaobtenerinformacionacercade companias,coberturas,derechosoquejasaI:1-800-252-3439 5 PuedeescribiralDepartamentodeSegurosdeTexas: P.O.Box149104 Austin.TX78714-9104 Fax:(512)475-1771 Web:http://www.tdi.state.tx.us E-mail:ConsumerProtection@tdi.state.tx.us DISPUTASSOBREPRIMASORECLAMOS: Sitieneunadisputaconcernienteasuprimaoaunreclamo,debecomunicarseconelagentedesegurode tituloprimero.Sinoseresuelveladisputa,puedeentoncescomunicarseconeldepartamento(TDI). UNAESTEAVISOASUPOLIZA:Esteavisoessoloparapropositodeinformacionynoseconvierteen parteocondiciondeldocumentoadjunto.