Loading...
2015-211s:\legal\our documents\real estate\fire\rose contract of sale - fire station ordinance.doc ORDINANCE NO. 2015-211 AN ORDINANCE AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE A CONTRACT OF SALE BETWEEN JASON ROSE ("OWNER"), AS SELLER, AND THE CITY OF DENTON ("CITY") AS BUYER, FOR THE SALE AND PURCHASE OF A 1.227 ACRE TRACT, MORE OR LESS, SITUATED IN THE S. MCCRACKEN SURVEY, ABSTRACT NO. 817, CITY OF DENTON, DENTON COUNTY, TEXAS, AND LOCATED GENERALLY IN THE 2100 BLOCK OF EAST SHERMAN DRIVE ("PROPERTY INTERESTS"), FOR THE PURCHASE PRICE OF ONE HUNDRED SIXTY FIVE THOUSAND DOLLARS AND NO CENTS ($165,000.00), AND OTHER CONSIDERATION, AS PRESCRIBED IN THE CONTRACT OF SALE; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, after due consideration of the public interest and necessity and the public use and benefit to accrue to the City of Denton, Texas; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee, is authorized (a) to execute on behalf of the City (i) the Contract of Sale between the City and Owner, in the form attached as Exhibit "A" and made a part hereof, with a purchase price of $165,000.00, as prescribed in the Contract of Sale, and (ii) any other documents necessary for closing the transactions contemplated by the Contract of Sale; and (b) to make expenditures in accordance with the terms of the Contract of Sale. SECTION 2. If any section, article, paragraph, sentence, phrase, clause or word in this ordinance, or application thereof to any persons or circumstances, is held invalid or unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance; the City Council declares that it would have ordained such remaining portion despite such invalidity, and such remaining portion shall remain in full force and effect. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2015. CHRIS WATTS, MAYO ATTEST: JENNIFER WALTERS, CITY SECRETARY By; APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: Page 2 s:\water engineering\engr\real estate\projects\row shared\projects\fire station 4 (2015)\fire station 4\rose\fire station -e. sherman dr -contract of sale draft.doc 1 1 1 1; ,, 1 . ;I . I► 1 1 I .�1 1 1 I I Ii 1 . 1 ► 1 .. 1 . 1 1; ., This Contract of Sale (the "Contract") is made this 1 day of 2015, effective as of the date of execution hereof by Buyer, as defin d rein (the "Effective Date"), by and between Jason Rose, (referred to herein as "Seller") and the City of Denton, Texas, a Home Rule Municipal Corporation of Denton County, Texas (referred to herein as "Buyer"). WHEREAS, Seller owns that certain tract of land being moreparticularly described on • • hereto and made a part hereoffor purposes, being located in Denton County, Texas (the "Land"); and WHEREAS, Seller desires to sell to Buyer, and Buyer desires to buy from Seller, the Land, together with any and all rights or interests of Seller in and to adjacent streets, alleys and rights of way and together with all and singular the improvements and fixtures thereon and all other rights and appurtenances to the Land (collectively, the "Property") For the consideration hereinafter set forth, and upon the terms, conditions and provisions herein contained, Seller agrees to sell and convey to Buyer, and Buyer agrees to purchase from Seller, the Property. ARTICLE 11 2.01 Purchase Price. The Purchase Price to be paid to Seller for the Property is the sum of One Hundred Sixty Five Thousand and No/100 Dollars ($165,000.00) (the "Purchase Price"). 2.02 Earnest Money. Buyer shall deposit the sum of Four Thousand and No/100 Dollars ($4,000.00), as Earnest Money (herein so called) with Reunion Title, 2745 Wind River Ln. Denton, TX 76210 (the "Title Company"), as escrow agent, within fourteen (14) calendar days after the Effective Date hereof. All interest earned thereon shall become part of the Earnest Money and shall be applied or disposed of in the same manner as the original Earnest Money deposit, as provided in this Contract. If the purchase contemplated hereunder is consummated in accordance with the terms and the provisions hereof, the Earnest Money, together with all interest earned thereon, shall be applied to the Purchase Price at Closing. In all other events, the Earnest Money, and the interest accrued thereon, shall be disposed of by the Title Company as provided in this Contract. 2.03 Independent Contract Consideration. Within fourteen (14) calendar days after the Effective Date, Buyer shall deliver to the Title Company, payable to and for the benefit of Seller, a check in the amount of One Hundred and No/100 Dollars ($100.00) (the "Independent Contract Consideration"), which amount the parties hereby acknowledge and agree has been bargained for and agreed to as consideration for Seller's execution and delivery of the Contract. The Independent Contract Consideration is in addition to, and independent of any other consideration or payment provided in this Contract, is non-refundable, and shall be retained by Seller notwithstanding any other provision of this Contract. RANINUUMM-_ . I I I IN MW I t NJ 'ZIMA Wd 3.01 Title Commitment. (a) Within twenty (20) calendar days after the Effective Date, Seller shall cause to be furnished to Buyer a current Commitment for Title Insurance (the "Title Commitment") for the Property, issued by Title Company. The Title Commitment shall set forth the state of title to the Property, including a list of liens, mortgages, security interests, encumbrances, pledges, assignments, claims, charges, leases (surface, space, mineral, or otherwise), conditions, restrictions, options, severed mineral or royalty interests, conditional sales contracts, rights of first refusal, restrictive covenants, exceptions, easements (temporary or permanent), rights-of-way, encroachments, or any other outstanding claims, interests, estates or equities of any nature (each of which are referred to herein as an "Exception"). (b) Along with the Title Commitment, Seller shall also cause to be delivered to Buyer, at Buyer's sole cost and expense, true and correct copies of all instruments that create or evidence Exceptions (the "Exception Documents"), including those described in the Title Commitment as exceptions to which the conveyance will be subject and/or which are required to be released or cured at or prior to Closing. 3.02 Survey. Within thirty (30) calendar days after the Effective Date, Seller shall cause to be prepared at Buyer's expense, a current on the ground survey of the Property (the "Survey"). The contents of the Survey shall be prepared by a surveyor selected by Buyer and shall include the matters prescribed by Buyer, which may include but not be limited to, a depiction of the location of all roads, streets, easements and rights of way, both on and adjoining the Property, water courses, 100 year flood plain, fences and improvements and structures of any kind and other matters provided in items 1-4, 6, 7a, 8, 10 and 11 of Table A of the ALTA Minimum Standard Detail Requirements. The Survey shall describe the size of the Property, in acres, and contain a metes and bounds description thereof. Seller shall furnish or cause to be furnished any affidavits, certificates, assurances, and/or resolutions as required by the Title Company in order to amend the survey exception as required by Section 3.05, below. The description of the Property as set forth in the Survey, at the Buyer's election, shall be used to describe the Property in the deed to convey the Property to Buyer and shall be the description set forth in the Title Policy. Notwithstanding the Survey of the Property, the Purchase Price for the Property, as prescribed by Section 2.01, above, shall not be adjusted in the event the Survey shall determine the Property to be either larger or smaller than that depicted in Exhibit "A", attached hereto. 3.03 Review of Title Commitment, Survey and Exception Documents. Buyer shall have a period of fifteen (15) calendar days (the "Title Review Period") commencing with the day Buyer receives the last of the Title Commitment, the Survey, and the Exception Documents, in which to give written notice to Seller, specifying Buyer's objections to one or more of the items ("Objections"), if any. All items set forth in the Schedule C of the Title Commitment, and all other items set forth in the Title Commitment which are required to be released or otherwise satisfied at or prior to Closing, shall be deemed to be Objections without any action by Buyer. 3.04 Seller's Obligation to Cure; Buyer's Right to Terminate. The Seller shall, within twenty (20) calendar days after Seller is provided notice of Objections, either satisfy the Objections at Seller's sole cost and expense or promptly notify Buyer in writing of the Objections that Seller cannot or will not satisfy at Seller's expense. Notwithstanding the foregoing sentence, Seller shall, in any event, be obligated to cure those Objections or Exceptions that have been voluntarily placed on or against the Property by Seller after the Effective Date. If Seller fails or refuses to satisfy any Objections that Seller is not obligated to cure within the allowed twenty (20) calendar day period, as may be extended by Buyer, in its sole discretion, then Buyer has the option of either: (a) waiving the unsatisfied Objections by, and only by, notice in writing to Seller prior to Closing, in which event those Objections shall become Permitted 3 Exceptions (herein so called), or (b) terminating this Contract by notice in writing prior to Closing and receiving back the Earnest Money, in which latter event Seller and Buyer shall have no further obligations, one to the other, with respect to the subject matter of this Contract. 3.05 Title Policy. At Closing, Seller, at Seller's sole cost and expense, shall cause a standard Texas Owner's Policy of Title Insurance ("Title Policy") to be furnished to Buyer. The Title Policy shall be issued by the Title Company, in the amount of the Purchase Price and insuring that Buyer has indefeasible fee simple title to the Property, subject only to the Permitted Exceptions. The Title Policy may contain only the Permitted Exceptions and shall contain no other exceptions to title, with the standard printed or common exceptions amended or deleted as follows: (a) survey exception must be amended if required by Buyer to read "shortages in area" only (although Schedule C of the Title Commitment may condition amendment on the presentation of an acceptable survey and payment, to be borne solely by Buyer, of any required additional premium); (b) no exception will be permitted for "visible and apparent easements" or words to that effect (although reference may be made to any specific easement or use shown on the Survey, if a Permitted Exception); (c) no exception will be permitted for "rights of parties in possession", unless otherwise agreed by Buyer; (d) no liens will be shown on Schedule B. Notwithstanding the enumeration of the following exceptions, amendments and/or deletions, Buyer may object to any Exception it deems material, in its sole discretion. ARTICLE IV oftNffiff.p-� 4.01 Review Period. Any term or provision of this Contract notwithstanding, the obligations of Buyer specified in this Contract are wholly conditioned on Buyer's having determined, in Buyer's sole and absolute discretion, during the period commencing with the Effective Date of this Contract and ending forty five (45) calendar days thereafter (the "Absolute Review Period"), based on such appraisals, tests, examinations, studies, investigations and inspections of the Property the Buyer deems necessary or desirable, including but not limited to studies or inspections to determine the existence of any environmental hazards or conditions, performed at Buyer's sole cost, that Buyer finds the Property suitable for Buyer's purposes. Buyer is granted the right to conduct engineering studies of the Property, and to conduct a physical inspection of the Property, including inspections that invade the surface and subsurface of the Property. If Buyer determines, in its sole judgment, that the Property is not suitable, for any reason, for Buyer's intended M use or purpose, the Buyer may terminate this Contract by written notice to the Seller, as soon as reasonably practicable, but in any event prior to the expiration of the Absolute Review Period, in which case the Earnest Money will be returned to Buyer, and neither Buyer nor Seller shall have any further duties or obligations hereunder. In the event Buyer elects to terminate this Contract pursuant to the terms of this Article IV, Section 4.01, Buyer will provide to Seller, if requested by Seller, copies of (i) any and all non - confidential and non -privileged reports and studies obtained by Buyer during the Absolute Review Period; and (ii) the Survey. F.M."yo NI N I ONO ��A" LA 01010 1 DION 5.01 Representations and Warranties of Seller. To induce Buyer to enter into this Contract and consummate the sale and purchase of the Property in accordance with the terms and provisions herewith, Seller represents and warrants to Buyer as of the Effective Date and as of the Closing Date, except where specific reference is made to another date, that: (a) The descriptive information concerning the Property set forth in this Contract is complete, accurate, true and correct. (b) There are no adverse or other parties in possession of the Property or any part thereof, and no party has been granted any license, lease or other right related to the use or possession of the Property, or any part thereof, except those described in the Leases, as defined in Article V, Section 5.02(a). (c) The Seller has good and marketable fee simple title to the Property, subject only to the Permitted Exceptions. (d) The Seller has the full right, power, and authority to sell and convey the Property as provided in this Contract and to carry out Seller's obligations hereunder. (e) The Seller has not received notice of, and has no other knowledge or information of, any pending or threatened judicial or administrative action, or any action pending or threatened by adjacent landowners or other persons against or affecting the Property. (f) The Seller has paid all real estate and personal property taxes, assessments, excises, and levies that are presently due, if any, which are against or are related to the Property, or will be due as of the Closing, and the Property will be subject to no such liens. (g) Seller has not contracted or entered into any agreement with any real estate broker, agent, finder, or any other party in connection with this transaction or taken any action which would result in any real estate broker commissions or M110 finder's fee or other fees payable to any other party with respect to the transactions contemplated by this Contract. (h) All Leases, as defined in Article V, Section 5.02(a), shall have expired or otherwise terminated and any and all tenants or parties occupying the Property pursuant to the Leases shall have permanently abandoned and vacated the Property, including without limitation, all personal property of any such tenants or parties, on or before the date of Closing. (i) The Seller is not a "foreign person" as defined in Section 1445 of the Internal Revenue Code of 1986, as amended. 5.02 Covenants and Agreements of Seller. Seller covenants and agrees with Buyer as follows: (a) Within ten (10) calendar days after the Effective Date, Seller, at Seller's sole cost and expense, shall deliver to Buyer, with respect to the Property, true, correct, and complete copies of the following: (i) All lease agreements and/or occupancy agreements and/or licenses of any kind or nature (if oral, Seller shall provide to Buyer in writing all material terms thereof) relating to the possession of the Property, or any part thereof, including any and all modifications, supplements, and amendments thereto (the "Leases"). (b) From the Effective Date until the date of Closing or earlier termination of this Contract, Seller shall: (i) Not enter into any written or oral contract, lease, easement or right of way agreement, conveyance or any other agreement of any kind with respect to, or affecting, the Property that will not be fully performed on or before the Closing or would be binding on Buyer or the Property after the date of Closing. (ii) Advise the Buyer promptly of any litigation, arbitration, or administrative hearing, or claims related thereto, concerning or affecting the Property. (iii) Not take, or omit to take, any action that would result in a violation of the representations, warranties, covenants, and agreements of Seller. (iv) Not sell, assign, lease or convey any right, title or interest whatsoever in or to the Property, or create, grant or permit to be attached or perfected, any lien, encumbrance, or charge thereon. (c) Seller shall indemnify and hold Buyer harmless, to the extent permitted by law, from all loss, liability, and expense, including, without limitation, reasonable attorneys' fees, arising or incurred as a result of any liens or claims resulting from labor or materials furnished to the Property under any written or oral contracts arising or entered into prior to Closing. (d) On or before Closing, Seller shall remove (i) any waste material or debris that are located upon, or may accumulate or otherwise be placed on the Property (the "Waste Material"), from the Property and dispose of same in accordance with all applicable statutes, regulations, rules, orders and ordinances; and (ii) all personal property from the Property. It is expressly stipulated that (i) the Waste Material shall be deemed at all times the property of Seller; and (ii) Buyer may retain, destroy, or dispose of any property, of any kind or type, left or remaining on the Property at Closing (the "Abandoned Property"), without liability of any kind to Buyer and without payment of consideration of any kind to Seller. In the event Buyer shall elect to store said Abandoned Property, Buyer may store such Abandoned Property in the name, and at the expense, of Buyer. 5.02.A. Warranty of Buyer; Property Condition. Buyer represents and warrants to Seller that it has made, or will make prior to Closing, an independent inspection and evaluation of the Property and acknowledges that Seller has made no statements or representations concerning the present or future value of the Property, or the condition, including the environmental condition, of the Property. Except as otherwise specifically represented and warranted by Seller in this Contract, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESSED, STATUTORY, OR IMPLIED, AS TO THE VALUE, QUALITY, QUANTITY, PHYSICAL AND ENVIRONMENTAL CONDITION OF THE PROPERTY AND/OR MATERIALS CONTAINED OR LOCATED IN, ON OR UNDER THE PROPERTY, THE NATURE OF THE PAST OR HISTORIC USE OF THE PROPERTY, AND/OR MERCHANTABILITY OR FITNESS FOR PURPOSE OF ANY OF THE PROPERTY. Buyer further acknowledges that it has relied solely upon its independent evaluation and examination of the Property, and public records relating to the Property and the independent evaluations and studies based thereon. Seller makes no warranty or representation as to the accuracy, completeness or usefulness of any information furnished to Buyer, if any, whether furnished by Seller or any third party. Seller assumes no liability for the accuracy, completeness or usefulness of any material furnished by Seller, if any, and/or any other person or party. Reliance on any material so furnished is expressly disclaimed by Buyer, and shall not give rise to any cause, claim or action against Seller. 5.03 Survival Beyond Closing. Notwithstanding anything to the contrary contained in this Contract, the representations, warranties, covenants and agreements of Seller and Buyer contained in this Contract shall survive the Closing, and shall not, in any circumstance, be merged with the Special Warranty Deed, as described in Article VII, Section 7.02(a). ARTICLE VI 6.01 Performance of Seller's Obligations. Buyer is not obligated to perform under this Contract unless, within the designated time periods, all of the following shall have occurred: (a) Seller has performed, furnished, or caused to be furnished to Buyer all items required to be so performed or furnished under other sections of this Contract; and (b) Seller cures or Buyer waives in writing, within the time periods specified in Article 111, all of Buyer's objections made in accordance with Article 111. 6.02 Breach of Seller's Representations, Warranties, Covenants and Agreements. Buyer is not obligated to perform under this Contract unless all representations, warranties, covenants and agreements of Seller contained in this Contract are true and correct or have been performed, as applicable, as of the Closing Date, except where specific reference is made to another date. 6.03 Adverse Change. Buyer is not obligated to perform under this Contract, if on the date of Closing, any portion of the Property has been condemned by an entity other than Buyer, or is the subject of condemnation, eminent domain, or other material proceeding initiated by an entity other than Buyer, or the Property, or any part thereof, has been materially or adversely impaired in any manner. 6.04 Review Period. Buyer is not obligated to perform under this Contract if Buyer delivers notice to Seller pursuant to Article IV, Section 4.01 that Buyer has determined that the Property is unsuitable to or for Buyer's purposes. 6.05 Buyer's Right to Waive Conditions Precedent. Notwithstanding anything contained in this Contract to the contrary, Buyer may, at Buyer's option, elect to waive any of the conditions precedent to the performance of Buyer's obligations under this Contract by giving to the Seller, at any time prior to Closing, a written waiver specifying the waived condition precedent. 6.06 Buyer's Termination if Conditions Precedent Not Satisfied or Waived. If any of the conditions precedent to the performance of Buyer's obligations under this Contract have not been satisfied by Seller or waived by the Buyer, the Buyer may, by giving written notice to Seller, terminate this Contract. On Buyer's termination, the Earnest Money shall be immediately returned to Buyer by the Title Company. The Seller shall, on written request from Buyer, promptly issue the instructions necessary to instruct the Title Company to return to Buyer the Earnest Money and, thereafter, except as otherwise provided in this Contract, Buyer and Seller shall have no further obligations under this Contract, one to the other. N A U-- =- MMILU-010 7.01 Date and Place of Closing. The Closing (herein so called) shall take place in the offices of the Title Company and shall be accomplished through an escrow to be established with the Title Company, as escrowee. The Closing Date (herein sometimes called), shall be eighty (80) calendar days after the Effective Date, unless otherwise mutually agreed upon by Buyer and Seller. Will I I I toi 1. rr I rrilmnJIM=- (a) Seller. At the Closing, Seller shall deliver or cause to be delivered to Buyer or the Title Company, at the expense of the party designated herein, the following items: (i) The Title Policy, in the form specified in Article 111, Section 3.05; (ii) The Special Warranty Deed, substantially in the form as attached hereto as Exhibit "B", subject only to the Permitted Exceptions, if any, duly executed by Seller and acknowledged; (iii) Other items reasonably requested by the Title Company as administrative requirements for consummating the Closing. (b) Buyer. At the Closing, Buyer shall deliver to Seller or the Title Company, the following items: (i) The sum required by Article 11, Section 2.01, less the Earnest Money and interest earned thereon, in the form of a check or cashier's check or other immediately available funds; (ii) Other items reasonably requested by the Title Company as administrative requirements for consummating the Closing. 7.03 Adjustments at Closing. Notwithstanding anything to the contrary contained in this Contract and without limiting the general application of the provisions of Section 5.03, above, the provisions of this Article V11, Section 7.03 shall survive the Closing. The following item shall be adjusted or prorated between Seller and Buyer with respect to the Property: (a) Ad valorem taxes relating to the Property for the calendar year in which the Closing shall occur shall be prorated and submitted by Seller to the Denton County Tax Assessor as of the Closing Date. Ad valorem tax for the calendar year in which the Closing shall occur shall be tendered under Texas Property Tax Code Section 26.11. If the actual amount of taxes for the calendar year in which the Closing shall occur is not W, known as of the Closing Date, the proration at Closing shall be based on the amount of taxes due and payable with respect to the Property for the preceding calendar year. Seller 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 date of Closing) and Buyer shall pay for those taxes attributable to the period of time commencing with the Closing Date. 7.04 Possession at Closing. Possession of the Property shall be delivered to Buyer at Closing. 7.05 Costs of Closing. Each party is responsible for paying the legal fees of its counsel, in negotiating, preparing, and closing the transaction contemplated by this Contract. Seller is responsible for paying fees, costs and expenses identified herein as being the responsibility of Seller. Buyer is responsible for paying all other fees, costs and expenses related to Closing. ARTICLE VIII DD RDIJ EFAULTS ANEME (a) Seller's Defaults. Seller is in default under this Contract on the occurrence of any one or more of the following events: (i) Any of Seller's warranties or representations contained in this Contract are untrue on the Closing Date; or (ii) Seller fails to meet, comply with or perform any covenant, agreement, condition precedent or obligation on Seller's part required within the time limits and in the manner required in this Contract; or (iii) Seller fails to deliver at Closing, the items specified in Article VII, Section 7.02(a) of this Contract for any reason other than a default by Buyer or termination of this Contract by Buyer pursuant to the terms hereof prior to Closing. (b) Buyer's Remedies. If Seller is in default under this Contract, Buyer as Buyer's remedies for the default, may, at Buyer's sole option, do any of the following: (i) Terminate this Contract by written notice delivered to Seller in which event the Buyer shall be entitled to a return of the Earnest Money, and Seller shall, promptly on written request from Buyer, execute and deliver any documents necessary to cause the Title Company to return to Buyer the Earnest Money; (ii) Enforce specific performance of this Contract against Seller, requiring Seller to convey the Property to Buyer subject to no liens, encumbrances, exceptions, and conditions other than those shown on the Title Commitment, whereupon Buyer shall waive title objections, if any, and accept such title without reduction in Purchase Price on account of title defects and shall be entitled to assert any rights for damages based on Seller's representations, warranties and obligations that are not waived by Buyer by its acceptance of Seller's title; and (iii) Seek other recourse or relief as may be available to Buyer at or by law, equity, contract or otherwise. 8.02 Buyer's Default and Seller's Remedies. (a) Buyer's Default. Buyer is in default under this Contract if Buyer fails to deliver at Closing, the items specified in Article V11, Section 7.02(b) of this Contract for any reason other than a default by Seller under this Contract or termination of this Contract by Buyer pursuant to the terms hereof prior to Closing. (b) Seller's Remedy. If Buyer is in default under this Contract, Seller, as Seller's sole and exclusive remedy for the default, may, at Seller's sole option, do either one of the following: (i) Terminate this Contract by written notice delivered to Buyer in which event the Seller shall be entitled to a return of the Earnest Money, and Buyer shall, promptly on written request from Seller, execute and deliver any documents necessary to cause the Title Company to return to Seller the Earnest Money; or (ii) Enforce specific performance of this Contract against Buyer. 0 U Mau - =-- 10 1 RM" WIX M 11R 9.01 Notice. All notices, demands, requests, and other communications required hereunder shall be in writing, delivered, unless expressly provided otherwise in this Contract, by telephonic facsimile, by hand delivery or by United States Mail, and shall be deemed to be delivered and received, upon the earlier to occur of (a) the date provided if provided by telephonic facsimile or hand delivery, and (b) the date of the deposit of, in a regularly maintained receptacle for the United States Mail, registered or certified, return receipt requested, postage prepaid, addressed as follows: O"On" Jason Rose 12-0 Oo r -7 Q 2-2-( City of Denton Paul Williamson Real Estate and Capital Support 11 901 -A Texas Street Denton, Texas 76209 Telecopy: (940) 349-8951 Copies to: For Seller: For Buyer: Larry Collister, Deputy City Attorney City Attorney's Office — - ----- ------ 215 E. McKinney Denton, Texas 76201 Telecopy: Telecopy: (940) 382-7923 9.02 Governing Law and Venue. This Contract is being executed and delivered and is intended to be performed in the State of Texas, the laws of Texas governing the validity, construction, enforcement and interpretation of this Contract. THIS CONTRACT IS PERFORMABLE IN, AND THE EXCLUSIVE VENUE FOR ANY ACTION BROUGHT WITH RESPECT HERETO, SHALL LIE IN DENTON COUNTY, TEXAS. 9.03 Entirety and Amendments. This Contract embodies the entire agreement between the parties and supersedes all prior agreements and understandings, if any, related to the Property, and may be amended or supplemented only in writing executed by the party against whom enforcement is sought. 9.04 Parties Bound. This Contract is binding upon and inures to the benefit of Seller and Buyer, and their respective devisees, heirs, successors and assigns. If requested by Buyer, Seller agrees to execute, acknowledge and record a memorandum of this Contract in the Real Property Records of Denton County, Texas, imparting notice of this Contract to the public. 9.05 Risk of Loss. If any damage to the Property shall occur prior to Closing, or if any condemnation or any eminent domain proceedings are threatened or initiated by an entity or party other than Buyer that might result in the taking of any portion of the Property, Buyer may, at Buyer's option, do any of the following: (a) Terminate this Contract and withdraw from this transaction without cost, obligation or liability, in which case the Earnest Money shall be immediately returned to Buyer; or (b) Consummate this Contract, in which case Buyer, with respect to the Property, shall be entitled to receive (i) in the case of damage, all insurance proceeds, if any; and (ii) in the case of eminent domain, all proceeds paid for the Property related to the eminent domain proceedings. Buyer shall have ten (10) calendar days after receipt of written notification from Seller on the final settlement of all condemnation proceedings or insurance claims 12 related to damage to the Property, in which to make Buyer's election. In the event Buyer elects to close prior to such final settlement, then the Closing shall take place as provided in Article VII, above, and there shall be assigned by Seller to Buyer at Closing, in form and substance satisfactory to Buyer, all interests of Seller in and to any and all insurance proceeds or condemnation awards which may be payable to Seller on account of such event. In the event Buyer elects to close upon this Contract after final settlement, as described above, Closing shall be held five (5) business days after such final settlement. 9.06 Further Assurances. In addition to the acts and deeds recited in this Contract and contemplated to be performed, executed and/or delivered by Seller and Buyer, Seller and Buyer agree to perform, execute and/or deliver, or cause to be performed, executed and/or delivered at the Closing or after the Closing, any further deeds, acts, and assurances as are reasonably necessary to consummate the transactions contemplated hereby. Notwithstanding anything to the contrary contained in this Contract and without limiting the general application of the provisions of Section 5.03, above, the provisions of this Article IX, Section 9.06 shall survive Closing. 9.07 Time is of the Essence. It is expressly agreed between Buyer and Seller that time is of the essence with respect to this Contract. 9.08 Exhibits. The Exhibits which are referenced in, and attached to this Contract, are incorporated in and made a part of, this Contract for all purposes. 9.09 Delegation of Authority. Authority to take any actions that are to be, or may be, taken by Buyer under this Contract, including without limitation, adjustment of the Closing Date, are hereby delegated by Buyer, pursuant to action by the City Council of Denton, Texas, to Robin F. Paulsgrove, Fire Chief of Buyer, or his designee. 9.10 Contract Execution. This Contract of Sale may be executed in any number of counterparts, all of which taken together shall constitute one and the same agreement, and any of the parties hereto may execute this Agreement by signing any such counterpart. 9.11 Business Days. If the Closing Date or the day of performance required or permitted under this Contract falls on a Saturday, Sunday or Denton County holiday, then the Closing Date or the date of such performance, as the case may be, shall be the next following regular business day. SELLER: t JASON ROSE Executed by Seller on the day of `� _ 2015. 13 By: 6?C AMPBEIJ. ',,CITY MANAGER (� /I Executed by Buyer on the ;U day of 2015. m FlLl IV bVAISO BY: L�ct 14 By its execution below, Title Company acknowledges receipt of an executed copy of this Contract. Title Company agrees to comply with, and be bound by, the terms and provisions of this Contract to perform its duties pursuant to the provisions of this Contract 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. Reunion Title 2745 Wind River Lane Denton, TX 76210 (940) 382-3030 M WMI Title: V'.. 'CAII Contract receipt date: 2015 15 EXHIBIT "A" to Contract of Sale aff-== � BEING all that certain lot, tract, or parcel of land situated in the S. McCracken Survey, Abstract Number 817, in the City and County of Denton, Texas, being all of Tracts 14, 15, 16, 17, and 18 described in a Special Warranty Deed from Billy Morris to Peggy J. Bailey recorded under Clerk's File No. 93-R0082575, Real Property Records, Denton County, Texas, Texas, and being more particularly described as follows: BEGINNING at an iron rod found for corner, said point being the Southwest comer of Lot 5, Block A, of Cambridge Square Subdivision, an addition to the City of Denton, Denton County, Texas according to the Plat thereof recorded in Volume 4, Page 38, Plat Records, Denton County, Texas; THENCE South 00 degrees 25 minutes 00 seconds West, pass at 25 feet the most westerly Southwest corner of Lot 6, Block A of said Subdivision, pass at 195 feet the Southwest corner of Lot 10, Block A of said Subdivision, a total distance of 200.00 feet with the West line of said Lots 6 and 10, Block A to an iron rod set for corner in the North line of Kings Row, a public roadway having a right-of-way of 50.0 feet; THENCE North 89 degrees 24 minutes 51 seconds West, 321.95 feet with said North line of said Kings Row to an iron rod set for comer in the Southeast line of Sherman Drive, a public roadway; THENCE North 29 degrees 08 minutes 06 seconds East, 227.68 feet with said Southeast line of said Sherman Drive to an iron rod set for comer, said point being the Southwest corner of that certain tract of land conveyed by deed from W.E. Williams to Tony R. Hill, et ux, recorded in Volume 2741, Page 16, Real Property Records, Denton County, Texas; THENCE South 89 degrees 24 minutes 51 seconds East, 212.55 feet with the South line of said Hill tract to the PLACE OF BEGINNING and containing 1.227 acres of land 16 EXHIBIT "B" TO Qt L -XV -4 -CX -,#—,,L% it.Lu— STATE OF TEXAS § I L-9111WILW&I12 1\ ULly, Z31 P00101011YA Vill W MIN That Jason Rose, a married man not joined herein as the herein conveyed property constitutes no part of homestead, (herein collectively called "Grantor"), for and in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00), and other good and valuable consideration to Grantor in hand paid by the City of Denton, Texas, a Texas Home Rule Municipal Corporation (herein called "Grantee"), 215 E. McKinney, Denton, Texas 76201, the receipt and sufficiency of which are hereby acknowledged and confessed, has GRANTED, SOLD and CONVEYED, and by these presents does GRANT, SELL and CONVEY, unto Grantee all the real property in Denton County, Texas being particularly described on Exhibit "A", attached hereto and made a part hereof for all purposes, and being located in Denton County, Texas, together with any and all rights or interests of Grantor in and to adjacent streets, alleys and rights of way and together with all and singular the improvements and fixtures thereon and all other rights and appurtenances thereto (collectively, the "Property"). Exceptions to conveyance and warranty: [Insert Permitted Exceptions, if any] 17 Grantor hereby assigns to Grantee, without recourse or representation, any and all claims and causes of action that Grantor may have for or related to any defects in, or injury to, the Property. Grantee represents and warrants to Grantor that it has made an independent inspection and evaluation of the Property and acknowledges that Grantor has made no statements or representations concerning the present or future value of the Property, or the condition, including the environmental condition, of the Property. Except as otherwise specifically represented and warranted by Grantor herein and in that certain Contract of Sale, dated , 2015, by and between Grantor and Grantee, GRANTOR MAKES NO REPRESENTATIONS OR WARRANTIES EXPRESSED, STATUTORY, OR IMPLIED, AS TO THE VALUE, QUALITY, QUANTITY, PHYSICAL AND ENVIRONMENTAL CONDITION OF THE PROPERTY AND/OR MATERIALS CONTAINED OR LOCATED IN, ON OR UNDER THE PROPERTY, THE NATURE OF THE PAST OR HISTORIC USE OF THE PROPERTY, AND/OR MERCHANTABILITY OR FITNESS FOR PURPOSE OF ANY OF THE PROPERTY. Grantee further acknowledges that it has relied solely upon its independent evaluation and examination of the Property, and public records relating to the Property and the independent evaluations and studies based thereon. Grantor makes no warranty or representation as to the accuracy, completeness or usefulness of any information furnished to Grantee, if any, whether furnished by Grantor or any third party. Grantor assumes no liability for the accuracy, completeness or usefulness of any material furnished by Grantor, if any, and/or any other person or party. Reliance on any material so furnished is expressly disclaimed by Grantee, and shall not give rise to any cause, claim or action against Grantor. TO HAVE AND TO HOLD the Property, together with all and singular the rights and appurtenances thereto in anywise belonging unto Grantee and Grantee's successors and assigns forever; and Grantor does hereby bind Grantor and Grantor's successors and assigns to WARRANT AND FOREVER DEFEND all and singular the Property unto 18 EXECUTED the _ day of 2015 WOOL IRM011" ForeffORNIMM This instrument was acknowledged before me on JASON ROSE. Upon Filing Return To: Attn: Paul Williamson 901 -A Texas Street Denton, TX 76209 19 E"roperty Tax Bills To: City,*f I'vxt*x Fix2xce ,1' •, t 15 E. McKinney Street *enton, Texas 76201 Exhibit "A" To Special Warranty Deed Legal Description BEING all that certain lot, tract, or parcel of land situated in the S. McCracken Survey, Abstract Number 817, in the City and County of Denton, Texas, being all of Tracts 14, 15, 16, 17, and 18 described in a Special Warranty Deed from Billy Morris to Peggy J. Bailey recorded under Clerk's File No. 93-ROO82575, Real Property Records, Denton County, Texas, Texas, and being more [�,articularly described as follows: MIEGINNING at an iron rod found for corner, said point being the Southwest corner of Lot 5, Block A, of Cambridge Square Subdivision, an addition to the City of Denton, Denton County, Texas according to the Plat thereof recorded i n Volume 4, Page 3 8, Plat Records, Denton County, Texas; THENCE South 00 degrees 25 minutes 00 seconds West, pass at 25 feet the most westerly Southwest corner of Lot 6, Block A of said Subdivision, pass at 195 feet the Southwest corner of Lot 10, Block A of said Subdivision, a total distance of 200.00 feet with the West line of said Lots 6 and 10, Block A to an iron rod set for corner in the North line of Kings Row, a public roadway having a right-of-way of 50.0 feet; THENCE North 89 degrees 24 minutes 51 seconds West, 321.95 feet with said North line of said Kings Row to an iron rod set for corner in the Southeast line of Sherman Drive, a public roadway; THENCE North 29 degrees 08 minutes 06 seconds East, 227.68 feet with said Southeast line of said Sherman Drive to an iron rod set for corner, said point being the Southwest corner of that certain tract of land conveyed by deed from W.E. Williams to Tony R. Hill, et ux, recorded in Volume 2741, Page 16, Real Property Records, Denton County, Texas; THENCE South 89 degrees 24 minutes 51 seconds East, 212.55 feet with the South line of said Hill tract to the PLACE OF BEGINNING and containing 1.227 acres of .fir 20 I i e 1 That Jason Rose, a married man not joined herein as the herein conveyed property constitutes no part of homestead, (herein collectively called "Grantor"), for and in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00), and other good and valuable consideration to Grantor in hand paid by the City of Denton, Texas, a Texas Home Rule Municipal Corporation (herein called "Grantee"), 215 E. McKinney, Denton, Texas 76201, the receipt and sufficiency of which are hereby acknowledged and confessed, has GRANTED, SOLD and CONVEYED, and by these presents does GRANT, SELL and CONVEY, unto Grantee all the real property in Denton County, Texas being particularly described on Exhibit "A", attached hereto and made a part hereof for all purposes, and being located in Denton County, Texas, together with any and all rights or interests of Grantor in and to adjacent streets, alleys and rights of way and together with all and singular the improvements and fixtures thereon and all other rights and appurtenances thereto (collectively, the "Property"). Exceptions to conveyance and warranty: This conveyance, however, is made and accepted subject to any and all validly existing encumbrances, conditions and restrictions, relating to the hereinabove described property as now reflected by the records of the County Clerk of Denton County, Texas. Grantor hereby assigns to Grantee, without recourse or representation, any and all claims and causes of action that Grantor may have for or related to any defects in, or injury to, the Property. Grantee represents and warrants to Grantor that it has made an independent inspection and evaluation of the Property and acknowledges that Grantor has made no statements or representations concerning the present or future value of the Property, or the condition, including the environmental condition, of the Property. Except as otherwise specifically represented and warranted by Grantor herein and in that certain Contract of Sale, dated July 21, 2015, by and between Grantor and Grantee, GRANTOR MAKES NO REPRESENTATIONS OR WARRANTIES EXPRESSED, STATUTORY, OR IMPLIED, AS TO THE VALUE, QUALITY, QUANTITY, PHYSICAL AND ENVIRONMENTAL CONDITION OF THE PROPERTY AND/OR MATERIALS CONTAINED OR LOCATED IN, ON OR UNDER THE PROPERTY, THE NATURE OF Tim- PAST HEPAST OR HISTORIC USE OF THE PROPERTY, AND/OR MERCHANTABILITY OR FITNESS FOR PURPOSE OF ANY OF THE PROPERTY. Grantee further acknowledges that it has relied solely upon its independent evaluation and examination of the Property, and public records relating to the Properly and the independent evaluations and studies based thereon. Grantor makes no warranty or representation as to the accuracy, completeness or usefulness of any information furnished to Grantee, if any, whether furnished by Grantor or any third party. Grantor assumes no liability for the accuracy, completeness or usefulness of any material furnished by Grantor, if any, and/or any other person or party. Reliance on any material so furnished is expressly disclaimed by Grantee, and shall not give rise to any cause, claim or action against Grantor. TO HAVE AND TO HOLD the Property, together with all and singular the rights and appurtenances thereto in anywise belonging unto Grantee and Grantee's successors and assigns forever; and Grantor does hereby bind Grantor and Grantor's successors and assigns to WARRANT AND FOREVER DEFEND all and singular the Property unto Grantee and Grantee's successors and assigns, against every person whomsoever lawfully clamming or to claim the same or any part thereof when the claim is by, through, or under Grantor, but not otherwise. EXECUTED the ..vvvvv: � day of , 2015 JASON ROSE FMXZIIITAVAA1� THE STATE OF § COUNTY )Oij�k, This instrument was acknowledged before me on , 2015 by JASON ROSE. M. NEELY fl Notary Public, State of Texas q My commission Expires lot:ry Public, Stag o['Tcxas F � , December 13, 2017 -;I:. � My corp missiozi expires: " Upon Filing Return To: The City of Denton -Engineering Attn: Paul Williamson 901-A Texas Street Denton, TX 76209 Property Tax Bills To: City of Denton Finance Department 215 E. McKinney Street Denton, Texas 76201 LEGAL DESCRIPTION — EXHIBIT "A" STATE OF TEXAS COUNTY OF DENTON Page 1 of 2 Being a 1.215 acre tract of land in the S. McCracken Survey, Abstract 817, City of Denton, Denton County, Texas, same being a portion of that certain tract of land conveyed to JASON ROSE by Deed recorded in Instrument No. 2014-73151, Deed Records, Denton County, Texas (D.R.D.C.T.), and being more particularly described as follows: BEGINNING at a 1/2 inch iron rod found for the southwest corner of Lot 10, Block A, CAMBRIDGE SQUARE SUBDIVISION, to the City of Denton, recorded in Volume 4, Page 38, Plat Records, Denton County, Texas (P.R.D.C.T.), same being in the north right-of-way line of KINGS ROW (variable public no.w.); THENCE North 89°25'22" West, along said north line of KINGS ROW (Variable ROW), for a distance of 320.21 feet to a 5/8 inch capped iron rod, with yellow plastic cap, stamped "A.R.S." set for corner; THENCE North 28°36'05" East, departing the north line of said KINGS ROW and along the easterly line of SHERMAN DRIVE (variable public no.w.), for a distance of 227.14 feet to a 5/8 inch capped iron rod, with yellow plastic cap, stamped "A.R.S." set for corner at the southwest corner of that certain tract of land conveyed to WILLIAMS RENTALS LLC by deed recorded in Instrument Number 2010-79727, Deed Records, Denton County, Texas; THENCE South 88°10'29" East, along the south lone of said WILLIAMS RENTALS LLC tract, for a distance of 212.78 feet to a 1/2 inch iron rod found for corner at the southeast corner of said WILLIAMS RENTALS LLC tract and the aforementioned west line of CAMBRIDGE SQUARE SUBDIVISION; THENCE South 00°21'17" West, along the west line of said CAMBRIDGE SQUARE SUBDIVISION, for a distance of 195.88 feet to the POINT OF BEGINNING and containing 1.215 acres or 52,935 square feet of land, more or less. Electronically FiledDocument 4 = • • CountyJul! Luke D •Number:2015-104220 Necorded On: September "Iec• ((• • Number of Pages: Recording I Direct- ROSE JASON Indirect - Receipt Processed ''i y: Jana Baker «w*«W******* THIS PAGE IS PART OF THE INSTRUMENT ************ Any provision herein which restricts the Sale, Rental or use of the described REAL PROPERTY because of color or race is invalid and unenforceable under federal law. THE STATE OF TEXAS) COUNTY OF DENTON) 1 hereby eertily thet this isirueent wen FILED in the File Ni■eber sequence on the dete/tise printed heron, end — duly RECORDED in the OR:clel Reeord a9 Denton County, Tesus. Juli Luke Cuenty Clerk , Y84 �.s.. Denton Ceoety, T— Any notice of claim and any other notice or statement in writing required to be given the Company under this Policy must be given to the Company at the address shown in Section 18 of the Conditions. COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a Nebraska corporation (the "Company") insures, as of Date of Policy and, to the extent stated in Covered Risks 9 and 10, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of: 1. Title being vested other than as stated in Schedule A. 2, Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from: (a) A defect in the Title caused by: (i) forgery, fraud, undue influence, duress, incompetency, incapacity or impersonation; (ii) failure of any person or Entity to have authorized a transfer or conveyance; (iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized or delivered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified, expired or otherwise invalid power of attorney; (vi) a document not properly filed, recorded or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (vii) a defective judicial or administrative proceeding. (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid. (c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term "encroachment" includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land. (d) Any statutory or constitutional mechanic's, contractor's, or materialman's lien for labor or materials having its inception on or before Date of Policy. 3. Lack of good and indefeasible Title. 4. No right of access to and from the Land. (Covered Risks Continued on Page 2 In Witness Whereof, First American Title Insurance Company has caused its corporate name to be hereunto affixed by its authorized officers as of Date of Policy shown in Schedule A. First American Title Insurance Company r - (This Policy is valid only when Schedules A and 8 are allached) Form 5025548 (7-1-14) Page 1 of 12 Thle Jnkd wan areded elsolronloolly and oanallluln an arlpind document TX T-1 Owner's Policy of Title Insurance (Rev. 1-3-14) Texas COVERED RISKS (Continued) 5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting or relating to: (a) the occupancy, use or enjoyment of the Land; (b) the character, dimensions or location of any improvement erected on the Land; (c) subdivision of land; or (d) environmental protection if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent of the violation or enforcement referred to in that notice. 6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice. 7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records. 8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge. 9. Title being vested other than as stated in Schedule A or being defective: (a) as a result of the avoidance in whole or in part, or from a court order providing an alternative remedy, of a transfer of all or any part of the title to or any interest in the Land occurring prior to the transaction vesting Title as shown in Schedule A because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency or similar creditors' rights laws; or (b) because the instrument of transfer vesting Title as shown in Schedule A constitutes a preferential transfer under federal bankruptcy, state insolvency or similar creditors' rights laws by reason of the failure of its recording in the Public Records: (i) to be timely, or (ii) to impart notice of its existence to a purchaser for value or a judgment or lien creditor. 10. Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 9 that has been created or attached or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of any matter insured against by this Policy, but only to the extent provided in the Conditions. IT, 16161Y#�Iucl# The following matters are expressly excluded from the coverage of and not disclosed in writing to the Company by the Insured this policy and the Company will not pay loss or damage, costs, Claimant prior to the date the Insured Claimant became an attorneys' fees or expenses that arise by reason of: Insured under this policy; 1. (a) Any law, ordinance, permit, or governmental regulation (c) resulting in no loss or damage to the Insured Claimant; (including those relating to building and zoning) restricting, (d) attaching or created subsequent to Date of Policy (however, regulating, prohibiting or relating to: this does not modify or limit the coverage provided under (i) the occupancy, use, or enjoyment of the Land; Covered Risk 9 and 10); or (ii) the character, dimensions or location of any (e) resulting in loss or damage that would not have been improvement erected on the Land; sustained if the Insured Claimant had paid value for the (iii) subdivision of land; or Title. (iv) environmental protection; 4. Any claim, by reason of the operation of federal bankruptcy, or the effect of any violation of these laws, ordinances or state insolvency, or similar creditors' rights laws, that the governmental regulations. This Exclusion 1(a) does not modify transaction vesting the Title as shown in Schedule A, is: or limit the coverage provided under Covered Risk 5. (a) a fraudulent conveyance or fraudulent transfer; or (b) Any governmental police power. This Exclusion 1(b) does (b) a preferential transfer for any reason not stated in Covered not modify or limit the coverage provided under Covered Risk 9 of this policy. Risk 6. 5. Any lien on the Title for real estate taxes or assessments 2. Rights of eminent domain. This Exclusion does not modify or imposed by governmental authority and created or attaching limit the coverage provided under Covered Risk 7 or 8. between Date of Policy and the date of recording of the deed or 3. Defects, liens, encumbrances, adverse claims or other matters: other instrument of transfer in the Public Records that vests (a) created, suffered, assumed or agreed to by the Insured Title as shown in Schedule A. Claimant; 6. The refusal of any person to purchase, lease or lend money on (b) not Known to the Company, not recorded in the Public the estate or interest covered hereby in the land described in Records at Date of Policy, but Known to the Insured Schedule A because of Unmarketable Title. Claimant Form 5025548 (7-1-14) Page 2 of 12 TX T-1 Owner's Policy of Title Insurance (Rev. 1-3-14) Texas CONDITIONS DEFINITION OF TERMS. The following terms when used in this policy mean: (a) "Amount of Insurance": the amount stated in Schedule A, as may be increased or decreased by endorsement to this policy, increased by Section 8(b), or decreased by Sections 10 and 11 of these Conditions. (b) "Date of Policy": The date designated as "Date of Policy" in Schedule A. (c) "Entity": A corporation, partnership, trust, limited liability company or other similar legal entity. (d) "Insured": the Insured named in Schedule A. (i) The term "Insured" also includes: (A) successors to the Title of the Insured by operation of law as distinguished from purchase, including heirs, devisees, survivors, personal representatives or next of kin; (B) successors to an Insured by dissolution, merger, consolidation, distribution or reorganization; (C) successors to an Insured by its conversion to another kind of Entity; (D) a grantee of an Insured under a deed delivered without payment of actual valuable consideration conveying the Title; (1) If the stock, shares, memberships, or other equity interests of the grantee are wholly- owned by the named Insured, (2) If the grantee wholly owns the named Insured, (3) If the grantee is wholly-owned by an affiliated Entity of the named Insured, provided the affiliated Entity and the named Insured are both wholly-owned by the same person or Entity, or (4) If the grantee is a trustee or beneficiary of a trust created by a written instrument established by the Insured named in Schedule A for estate planning purposes. (ii) With regard to (A), (B), (C) and (D) reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor Insured. (e) "Insured Claimant": an Insured claiming loss or damage. (f) "Knowledge" or "Known": actual knowledge, not constructive knowledge or notice that may be imputed to an Insured by reason of the Public Records or any other records that impart constructive notice of matters affecting the Title. (g) "Land": the land described in Schedule A, and affixed improvements that by law constitute real property. The term "Land" does not include any property beyond the lines of the area described in Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but this does not modify or limit the extent that a right of access to and from the Land is insured by this policy. (h) "Mortgage": mortgage, deed of trust, trust deed, or other security instrument, including one evidenced by electronic means authorized by law. Form 5025548 (7-1-14) Page 3 of 12 (i) "Public Records": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to Feal property to purchasers for value and without Knowledge. With respect to Covered Risk 5(d), "Public Records" shall also include environmental protection liens filed in the records of the clerk of the United States District Court for the district where the Land is located. (j) "Title": the estate or interest described in Schedule A. (k) "Unmarketable Title": Title affected by an alleged or apparent matter that would permit a prospective purchaser or lessee of the Title or lender on the Title to be released from the obligation to purchase, lease or lend if there is a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE. The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title. This policy shall not continue in force in favor of any purchaser from the Insured of either (i) an estate or interest in the Land, or (ii) an obligation secured by a purchase money Mortgage given to the Insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The Insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 5(a) below, or (ii) in case Knowledge shall come to an Insured hereunder of any claim of title or interest that is adverse to the Title, as insured, and that might cause loss or damage for which the Company may be liable by virtue of this policy. If the Company is prejudiced by the failure of the Insured Claimant to provide prompt notice, the Company's liability to the Insured Claimant under the policy shall be reduced to the extent of the prejudice. When, after the Date of the Policy, the Insured notifies the Company as required herein of a lien, encumbrance, adverse claim or other defect in Title insured by this policy that is not excluded or excepted from the coverage of this policy, the Company shall promptly investigate the charge to determine whether the lien, encumbrance, adverse claim or defect or other matter is valid and not barred by law or statute. The Company shall notify the Insured in writing, within a reasonable time, of its determination as to the validity or invalidity of the Insured's claim or charge under the policy. If the Company concludes that the lien, encumbrance, adverse claim or defect is not covered by this policy, or was otherwise addressed in the closing of the transaction in connection with which this policy was issued, the Company shall specifically advise the Insured of the reasons for its determination. If the Company concludes that the lien, encumbrance, adverse claim or defect is valid, the Company shall take one of the following actions: (i) institute the necessary proceedings to clear the lien, encumbrance, adverse claim or defect from the Title as insured; (ii) indemnify the Insured as provided in this policy; (iii) upon payment of appropriate premium and charges therefor, issue to the Insured Claimant or to a subsequent owner, mortgagee or holder of the estate or interest in the Land insured by this policy, a policy of TX T-1 Owner's Policy of Title Insurance (Rev. 1-3-14) Texas CONDITIONS (Continued) title insurance without exception for the lien, encumbrance, aid (i) in securing evidence, obtaining witnesses, adverse claim or defect, said policy to be in an amount equal to prosecuting or defending the action or proceeding, or the current value of the Land or, if a loan policy, the amount of effecting settlement, and (ii) in any other lawful act that in the loan; (iv) indemnify another title insurance company in the opinion of the Company may be necessary or desirable connection with its issuance of a policy(les) of title insurance to establish the Title or any other matter as insured. If the without exception for the lien, encumbrance, adverse claim or Company is prejudiced by the failure of the Insured to defect; (v) secure a release or other document discharging the furnish the required cooperation, the Company's obligations lien, encumbrance, adverse claim or defect; or (vi) undertake a to the Insured under the policy shall terminate, including combination of (i) through (v) herein. any liability or obligation to defend, prosecute, or continue 4. PROOF OF LOSS. any litigation, with regard to the matter or matters requiring In the event the Company is unable to determine the amount of such cooperation. loss or damage, the Company may, at its option, require as a (b) The Company may reasonably require the Insured condition of payment that the Insured Claimant furnish a signed Claimant to submit to examination under oath by any proof of loss. The proof of loss must describe the defect, lien, authorized representative of the Company and to produce encumbrance or other matter insured against by this policy that for examination, inspection and copying, at such constitutes the basis of loss or damage and shall state, to the reasonable times and places as may be designated by the extent possible, the basis of calculating the amount of the loss authorized representative of the Company, all records, in or damage. whatever medium maintained, including books, ledgers, 5. DEFENSE AND PROSECUTION OF ACTIONS. checks, memoranda, correspondence, reports, e-mails, (a) Upon written request by the Insured, and subject to the disks, tapes, and videos whether bearing a date before or options contained in Sections 3 and 7 of these Conditions, after Date of Policy, that reasonably pertain to the loss or the Company, at its own cost and without unreasonable damage. Further, if requested by any authorized delay, shall provide for the defense of an Insured in litigation representative of the Company, the Insured Claimant shall in which any third party asserts a claim covered by this grant its permission, in writing, for any authorized policy adverse to the Insured. This obligation is limited to representative of the Company to examine, inspect and only those stated causes of action alleging matters insured copy all of these records in the custody or control of a third against by this policy. The Company shall have the right to party that reasonably pertain to the loss or damage. All select counsel of its choice (subject to the right of the information designated as confidential by the Insured Insured to object for reasonable cause) to represent the Claimant provided to the Company pursuant to this Section Insured as to those stated causes of action. It shall not be shall not be disclosed to others unless, in the reasonable liable for and will not pay the fees of any other counsel. The judgment of the Company, it is necessary in the Company will not pay any fees, costs or expenses incurred administration of the claim. Failure of the Insured Claimant by the Insured in the defense of those causes of action that to submit for examination under oath, produce any allege matters not insured against by this policy. reasonably requested information or grant permission to (b) The Company shall have the right, in addition to the options secure reasonably necessary information from third parties contained in Sections 3 and 7, at its own cost, to institute as required in this subsection, unless prohibited by law or and prosecute any action or proceeding or to do any other governmental regulation, shall terminate any liability of the act that in its opinion may be necessary or desirable to Company under this policy as to that claim. establish the Title, as insured, or to prevent or reduce loss 7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; or damage to the Insured. The Company may take any TERMINATION OF LIABILITY. appropriate action under the terms of this policy, whether or In case of a claim under this policy, the Company shall have the not it shall be liable to the Insured. The exercise of these following additional options: rights shall not be an admission of liability or waiver of any (a) To Pay or Tender Payment of the Amount of Insurance. provision of this policy. If the Company exercises its rights To pay or tender payment of the Amount of Insurance under this subsection, it must do so diligently. under this policy together with any costs, attorneys' fees (c) Whenever the Company brings an action or asserts a and expenses incurred by the Insured Claimant that were defense as required or permitted by this policy, the authorized by the Company up to the time of payment or Company may pursue the litigation to a final determination tender of payment and that the Company is obligated to by a court of competent jurisdiction and it expressly pay. reserves the right, in its sole discretion, to appeal from any Upon the exercise by the Company of this option, all liability adverse judgment or order. and obligations of the Company to the Insured under this 6. DUTY OF INSURED CLAIMANT TO COOPERATE. policy, other than to make the payment required in this (a) In all cases where this policy permits or requires the subsection, shall terminate, including any liability or Company to prosecute or provide for the defense of any obligation to defend, prosecute, or continue any litigation. action or proceeding and any appeals, the Insured shall (b) To Pay or Otherwise Settle With Parties Other than the secure to the Company the right to so prosecute or provide Insured or With the Insured Claimant. defense in the action or proceeding, including the right to (i) To pay or otherwise settle with other parties for or in the use, at its option, the name of the Insured for this purpose. name of an Insured Claimant any claim insured against Whenever requested by the Company, the Insured, at the under this policy. In addition, the Company will pay any Company's expense, shall give the Company all reasonable costs, attorneys' fees and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is Form 5025548 (7-1-14) Page 4 of 12 TX T-1 Owner's Policy of Title Insurance (Rev. 1-3-14) Texas CONDITIONS (Continued) obligated to pay; or 11. LIABILITY NONCUMULATIVE. (ii) to pay or otherwise settle with the Insured Claimant the The Amount of Insurance shall be reduced by any amount the loss or damage provided for under this policy, together Company pays under any policy insuring a Mortgage to which with any costs, attorneys' fees and expenses incurred exception is taken in Schedule B or to which the Insured has by the Insured Claimant that were authorized by the agreed, assumed, or taken subject or which is executed by an Company up to the time of payment and that the Insured after Date of Policy and which is a charge or lien on the Company is obligated to pay. Upon the exercise by the Title, and the amount so paid shall be deemed a payment to the Company of either of the options provided for in Insured under this policy. subsections (b)(i) or (ii), the Company's obligations to 12. PAYMENT OF LOSS. the Insured under this policy for the claimed loss or When liability and the extent of loss or damage have been damage, other than the payments required to be made, definitely fixed in accordance with these Conditions, the shall terminate, including any liability or obligation to payment shall be made within 30 days. defend, prosecute or continue any litigation. 13. RIGHTS OF RECOVERY UPON PAYMENT OR 8. DETERMINATION AND EXTENT OF LIABILITY. SETTLEMENT. This policy is a contract of indemnity against actual monetary (a) Whenever the Company shall have settled and paid a claim loss or damage sustained or incurred by the Insured Claimant under this policy, it shall be subrogated and entitled to -the who has suffered loss or damage by reason of matters insured rights of the Insured Claimant in the Title and all other rights against by this policy. and remedies in respect to the claim that the Insured (a) The extent of liability of the Company for loss or damage Claimant has against any person or property, to the extent under this policy shall not exceed the lesser of: of the amount of any loss, costs, attorneys' fees and (i) the Amount of Insurance; or expenses paid by the Company. If requested by the (ii) the difference between the value of the Title as insured Company, the Insured Claimant shall execute documents to and the value of the Title subject to the risk insured evidence the transfer to the Company of these rights and against by this policy. remedies. The Insured Claimant shall permit the Company (b) If the Company pursues its rights under Section 3 or 5 and to sue, compromise or settle in the name of the Insured is unsuccessful in establishing the Title, as insured, Claimant and to use the name of the Insured Claimant in (i) the Amount of Insurance shall be increased by 10%, any transaction or litigation involving these rights and and remedies. (ii) the Insured Claimant shall have the right to have the If a payment on account of a claim does not fully cover the loss or damage determined either as of the date the loss of the Insured Claimant, the Company shall defer the claim was made by the Insured Claimant or as of the exercise of its right to recover until after the Insured date it is settled and paid. Claimant shall have recovered its loss. (c) In addition to the extent of liability under (a) and (b), the (b) The Company's right of subrogation includes the rights of Company will also pay those costs, attorneys' fees and the Insured to indemnities, guaranties, other policies of expenses incurred in accordance with Sections 5 and 7 of insurance or bonds, notwithstanding any terms or these Conditions. conditions contained in those instruments that address 9. LIMITATION OF LIABILITY. subrogation rights. (a) If the Company establishes the Title, or removes the alleged 14. ARBITRATION. defect, lien or encumbrance, or cures the lack of a right of Either the Company or the Insured may demand that the claim or access to or from the Land, all as insured, or takes action in controversy shall be submitted to arbitration pursuant to the Title accordance with Section 3 or 7, in a reasonably diligent Insurance Arbitration Rules of the American Land Title manner by any method, including litigation and the Association ("Rules"). Except as provided in the Rules, there shall completion of any appeals, it shall have fully performed its be no joinder or consolidation with claims or controversies of obligations with respect to that matter and shall not be liable other persons. Arbitrable matters may include, but are not limited for any loss or damage caused to the Insured. to, any controversy or claim between the Company and the (b) In the event of any litigation, including litigation by the Insured arising out of or relating to this policy, any service in Company or with the Company's consent, the Company connection with its issuance or the breach of a policy provision, or shall have no liability for loss or damage until there has to any other controversy or claim arising out of the transaction been a final determination by a court of competent giving rise to this policy. All arbitrable matters when the Amount jurisdiction, and disposition of all appeals, adverse to the of Insurance is $2,000,000 or less shall be arbitrated at the option Title, as insured. of either the Company or the Insured, unless the Insured is an (c) The Company shall not be liable for loss or damage to the individual person (as distinguished from an Entity). All arbitrable Insured for liability voluntarily assumed by the Insured in matters when the Amount of Insurance is in excess of $2,000,000 settling any claim or suit without the prior written consent of shall be arbitrated only when agreed to by both the Company and the Company. the Insured. Arbitration pursuant to this policy and under the 10. REDUCTION OF INSURANCE; REDUCTION OR Rules shall be binding upon the parties, Judgment upon the TERMINATION OF LIABILITY. award rendered by the Arbitrator(s) may be entered in any court All payments under this policy, except payments made for costs, of competent jurisdiction. attorneys' fees and expenses, shall reduce the Amount of Insurance by the amount of the payment. Form 5025548 (7-1-14) Page 5 of 12 TX T-1 Owner's Policy of Title Insurance (Rev. 1-3-14) Texas CONDITIONS (Continued) 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE 16. SEVERABILITY. CONTRACT. In the event any provision of this policy, in whole or in part, is (a) This policy together with all endorsements, if any, attached held invalid or unenforceable under applicable law, the policy to it by the Company is the entire policy and contract shall be deemed not to include that provision or such part held between the Insured and the Company. In interpreting any to be invalid and all other provisions shall remain in full force provision of this policy, this policy shall be construed as a and effect. whole, 17. CHOICE OF LAW; FORUM. (b) Any claim of loss or damage that arises out of the status of (a) Choice of Law: The Insured acknowledges the Company the Title or by any action asserting such claim, shall be has underwritten the risks covered by this policy and restricted to this policy. determined the premium charged therefor in reliance upon (c) Any amendment of or endorsement to this policy must be in the law affecting interests in real property and applicable to writing and authenticated by an authorized person, or the interpretation, rights, remedies or enforcement of expressly incorporated by Schedule A of this policy. policies of title insurance of the jurisdiction where the Land (d) Each endorsement to this policy issued at any time is made is located. a part of this policy and is subject to all of its terms and Therefore, the court or an arbitrator shall apply the law of provisions. Except as the endorsement expressly states, it the jurisdiction where the Land is located to determine the does not (i) modify any of the terms and provisions of the validity of claims against the Title that are adverse to the policy, (ii) modify any prior endorsement, (iii) extend the Insured, and in interpreting and enforcing the terms of this Date of Policy or (iv) increase the Amount of Insurance. policy. In neither case shall the court or arbitrator apply its Each Commitment, endorsement or other form, or provision conflicts of laws principles to determine the applicable law. in the Schedules to this policy that refers to a term defined (b) Choice of Forum: Any litigation or other proceeding brought in Section 1 of the Conditions shall be deemed to refer to by the Insured against the Company must be filed only in a the term regardless of whether the term is capitalized in the state or federal court within the United States of America or Commitment, endorsement or other form, or Schedule. its territories having appropriate jurisdiction. Each Commitment, endorsement or other form, or provision 18. NOTICES, WHERE SENT. in the Schedules that refers to the Conditions and Any notice of claim and any other notice or statement in writing Stipulations shall be deemed to refer to the Conditions of required to be given to the Company under this Policy must be this policy. given to the Company at First American Title Insurance Company, Attn: Claims National Intake Center, 1 First American Way, Santa Ana, California 92707. Phone: 888- 632-1642. Form 5025548 (7-1-14) Page 6 of 12 TX T-1 Owner's Policy of Title Insurance (Rev. 1-3-14) Texas M r� Owner Policy of Title Insurance (T-1) ISSUED BY `A, , First American Title Insurance Company POLICY NUMBER Schedule A 2027 -153431 -RU Name and Address of Title Insurance Company: First American Title Insurance Company, 1500 South Dairy Ashford, Suite 300, Houston, TX 77077. File No.: 2027 -153431 -RU Date of Policy: 09/08/2015 at 11:25 am Address for Reference only: 1221 and 1301 Kings Row, 2114, 2115 & 2118 E Sherman, Denton, TX 76209 Amount of Insurance: $165,000.00 Premium: $1,235.00 1. Name of Insured: City of Denton, Texas, a Texas Home Rule Municipal Corporation 2. The estate or interest in the Land that is insured by this policy is: FEE SIMPLE 3. Title is insured as vested in: City of Denton, Texas, a Texas Home Rule Municipal Corporation 4. The land referred to in this policy is described as follows: BEING a 1.215 acre tract of land in the S. McCracken Survey, Abstract 817, City of Denton, Denton County, Texas, same being a portion of that certain tract of land conveyed to Jason Rose by Deed recorded in Instrument no. 2014-73151, Deed Records, Denton County, Texas (D.R.D.C.T.), and being more particularly described as follows: BEGINNING at a 1/2 inch iron rod found for the Southwest corner of Lot 10, Block A, CAMBRIDGE SQUARE SUBDIVISION, to the City of Denton, recorded in Volume 4, Page 38, Plat Records, Denton County, Texas (P.R.D.C.T.), same being in the North right-of-way line of Kings Row (variable public r.o.w.); THENCE North 89 degrees 25 minutes 22 seconds West, along said North line of Kings Row (Variable ROW), for a distance of 320.21 feet to a 5/8 inch capped iron rod, with yellow plastic cap stamped "A.R.S." set for corner; THENCE North 28 degrees 36 minutes 05 seconds East, departing the North line of said Kings Row and along the Easterly line of Sherman Drive (variable public r.o.w.), for a distance of 227.14 feet to a 5/8 inch capped iron rod, with yellow plastic cap stamped "A.R.S." set for corner at the Southwest corner of that certain tract of land conveyed to William Rentals LLC, by deed recorded in Instrument Number 2010- 79727, Deed Records, Denton County, Texas; THENCE South 88 degrees 10 minutes 29 seconds East, along the South line of said Williams Rentals LLC tract, for a distance of 212.78 feet to a 1/2 inch iron rod found for corner at the Southeast corner of said Williams Rentals LLC tract and the aforementioned West line of Cambridge Square Subdivision; Form 5025548 (7-1-14) Page 7 of 12 TX T-1 Owner's Policy of Title Insurance (Rev. 1-3-14) Texas THENCE South 00 degrees 21 minutes 17 seconds West, along the West line of said Cambridge Square Subdivision, for a distance of 195.88 feet to the POINT OF BEGINNING and containing 1.215 acres or 52,935 square feet of land, more or less. Note: The company is prohibited from insuring the area or quantity of the land described herein. Any statement in the above legal description of the area or quantity of the land is not a representation that such area or quantity is correct, but is made only for informational and/or identification purposes and does not override Item 2 of Schedule B hereof. By its issuing agent, New Reunion Title, LLC Form 5025548 (7-1-14) Page 8 of 12 TITLE 2745 Wind River Lane Denton, TX 76210 (940)382-3030 Fax(940)382-3377 TX T-1 Owner's Policy of Title Insurance (Rev. 1-3-14) Texas om FirstAmerican 1 Schedule B File No. 2027 -153431 -RU Owner Policy of Title Insurance (T-1) ISSUED BY First iTitle POLICY NUMBER 2027 -153431 -RU EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorney's fees or expenses) that arise by reason of the terms and conditions of the leases and easements, if any, shown in Schedule A and the following matters: The following restrictive covenants of record itemized below: (the Company must either insert specific recording data or delete this exception) Item 1 of Schedule B is hereby deleted in its entirety. 2. Shortages in area. 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 beds 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 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 2015, and subsequent years; and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year. 6. The following matters and all terms of the documents creating or offering evidence of the matters: (the Company must insert matters or delete this exception) All leases, grants, exceptions or reservations of coal, lignite, oil, gas and other minerals, together with all rights, privileges, and immunities relating thereto, appearing in the Public Records whether listed in Schedule B or not. There may be leases, grants, exceptions or reservations of mineral interest that are not listed. Form 5025548 (7-1-14) Page 9 of 12 TX T-1 Owner's Policy of Title Insurance (Rev. 1-3-14) Texas Form 5025548 (7-1-14) Page 10 of 12 TX T-1 Owner's Policy of Tide Insurance (Rev. 1-3-14) Texas Important Notice FirstAmerican iht ISSUED BY First American Title Insurance Company ..e .. .. ............ IMPORTANT NOTICE AVISO IMPORTAN TE To obtain information or make a complaint., Para obtener informacion o para presentar una queja: You may call First American Title Insurance Companys toll Usted puede Aamar al numero de telofono gratuito de First free telephone number for information or to make a American Title Insurance Company's para informacion o para complaint at., presentar una queja al. 1-888-632-1642 1-888-632-1642 You may also write to First American Title Insurance Usted tamblon puede escribir a First American Title Insurance Company at., Company: 1 First American Way i FirstAmerican Way Santa Ana, California 92707 Santa Ana, California 92707 You may contact the Texas Department of Insurance to Usted puede comunicarse con el Departamento de Seguros de obtain information on companies, coverages, rights or Texas para obtener informacion sobre compaihas, coberturas, complaints at., derechos, o quejas ak 1-800-252-3439 1-800-252-3439 You may write the Texas Department of Insurance: Usted puede escribr`r al Departamento de Seguros de Texas a: P.O. Box 149104 P.O. Box 149104 Austin, 7X78714-9104 Austin, 7X78714-9104 Fax: (512) 490-1007 Fax: (512) 490-1007 Web: http./lwww.tdi.texas.gov Web: http.//www. tdi. texas.go v E-mail: Constin7eiProtection@tdi.texas.gov E-mail.- Con,5tit77erPt-otection@tdi.texas.gov PREMIUM OR CLAIM DISPUTES • DISPUTAS POR PRIMAS DE SEGUROS O Should you have a dispute concerning your premium or RECLAMACIONES: about a claim you should contact First American Title Si tiene una disputa relacionada con su prima de seguro con Insurance Company first. If the dispute is not resolved, you una reclamacion , usted Bebe comunicarse con el First American may contact the Texas Department of Insurance. Title Insurance Company primero. Si la disputa no es resuelta,. usted puede comunicare con el Departamento de Seguros de Texas ATTACH THIS NOTICE TO YOUR POLICY•• This notice is for information only and does not become a part or condition of the attached document. ADIUNTE ESTEAVISO A SU POLIZA: Este aviso es solamente para proposMitos informadvos y no se conwerte en parte o en condic1617 del documento adjunto. Form 50-TXNOTICE (5-27-15) Page 1 of 1 Mandatory Complaint Notice (6-1-15) Texas Form 5025548 (7-1-14) Page 10 of 12 TX T-1 Owner's Policy of Tide Insurance (Rev. 1-3-14) Texas TITLE a Subsidiary of REUNION TITLE PRIVACY STATEMENT Reunion Title (Reunion') Is a wholly owned subsidiary of First American Title Insurance Company. Reunion and Its subsidiary and affiliated companies respect the privacy and security of your non-public personal Information ("Personal Information') and protecting your Personal Information Is one of our top priorities. This Privacy Statement explains Reunion's privacy practices, Including how we use the Personal Information we receive from you and from other specified sources, and to whom it may be disclosed. Reunion follows the privacy practices described In this Privacy Statement and, depending on the business performed, Reunion may share Information described herein. Applicability This Privacy Policy governs our use of the Information that you provide to us. It does not govern the manner In which we may use Information we have obtained from any other source, such as Information obtained from a public record or from another person or entity. Reunion and First American have also adopted broader guidelines that govern our use of Personal Information regardless of Its source. First American calls these guidelines its Fair Information Values. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic Personal Information that we may collect Include: Information we receive from you on applications, forms and In other communications to us. whether In writing, In person, by telephone or any other means; + Information about your transactions with us, our affiliated companies, or others; + Information we receive from a consumer reporting agency; and + Information from you through our Internet websites, such as your name, address, email address, Internet Protocol address, the website links you used to get to our websites, and your activity while using or reviewing our websites. Uses of Information We request Information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your Personal Information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such Information Indefinitely, Including the period after which any customer relationship has ceased. Such Information may be used for any Internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of Personal Information listed above to one or more of our affiliated companies. Such affiliated companies Include financial service providers, such as title Insurers, property and casualty Insurers, and trust and Investment advisory companies, or companies Involved In real estate services, such as appraisal companies. house warranty companies and escrow companies. Furthermore, we may also provide all the Information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies or to other financial Institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even If you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your Personal Information. We restrict access to Personal Information about you to those Individuals and entitles who need to know that Information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your Personal Information will be handled responsibly and In accordance with this Privacy Policy and Reunion and First American's Fair Information Values. We currently maintain physical, electronic:, and procedural safeguards that comply with federal regulations to guard your Personal Information. Information Obtained Through Our Web Site Reunion and First American Financial Corporation are sensitive to privacy Issues on the Internet. We believe It Is Important you know how we treat the Information about you we receive on the Internet. In general, you can visit Reunion or First American or Its afflllates' Web sites on the World Wide Web without telling us who you are or revealing any Information about yourself. Our Web servers collect the domain names, not the e-mail addresses, of visitors. This Information Is aggregated to measure the number of visits, average time spent on the site, pages viewed and similar Information. Reunion and First American use this Information to measure the use of our site and to develop Ideas to Improve the content of our site. There are times, however, when we may need Information from you. such as your name and email address. When Information Is needed, we will use our best efforts to tet you know at the time of collection how we will use the Personal Information. Usually, the Personal Information we collect Is used only by us to respond to your Inquiry, process an order or allow you to access specific account/proflle Information. If you choose to share any Personal Information with us, we will only use It Its accordance with the policies outlined above. Business Relationships Reunion and First American Financial Corporation's sites and Its affiliates' sites may contain links to other Web sites. While we try to link only to sites that share our high standards and respect for privacy, we are not responsible for the content or the privacy practices employed by other sites. Cookies Some of Reunion's and First American's Web sites may make use of "cookie" technology to measure site activity and to customize Information to your personal tastes. A cookie Is an element of data that a Web site can send to your browser, which may then store the cookie on your hard drive. Reuniontitle.com and FlrstAm.com use stored cockles. The goal of this technology Is to better serve you when visiting our site, save you time when you are here and to provide you with a more meaningful and productive Web site experience. Fair Information Values d Fairness We consider consumer expectations about their privacy In all our businesses. We only offer products and services that assure a favorable balance between consumer benefits and consumer privacy. Public Record We believe that an open public record creates significant value for society, enhances consumer choice and creates consumer opportunity. We actively support an open public record and emphasize Its Importance and contribution to our economy. Use We believe we should behave responsibly when we use Information about a consumer In our business. We will obey the laws governing the collection, use and dissemination of data. Accuracy We will take reasonable steps to help assure the accuracy of the data we collect, use and disseminate. Where possible, we will take reasonable steps to correct Inaccurate Information. When, as with the public record, we cannot correct Inaccurate Information, we will take all reasonable steps to assist consumers In Identifying the source of the erroneous data so that the consumer can secure the required corrections. Education We endeavor to educate the users of our products and services, our employees and others In our Industry about the Importance of consumer privacy. We will Instruct our employees on our fair Information values and on the responsible collection and use of data. We will encourage others In our Industry to collect and use Information In a responsible manner. Security We will maintain appropriate facilities and systems to protect against unauthorized access to and corruption of the data we maintain. Effective Date: August 1, 2011 Form 5025548 (7-1-14) Page 11 of 12 TX T-1 Owner's Policy of Title Insurance (Rev. 1-3-14) Texas Requests for Correction, Amendment, or Deletion of Personal Information As required by applicable law, we will afford you the right to access your Personal Information, under certain circumstances to find out to whom your Personal Information has been disclosed, and request correction or deletion of your Personal Information. However, Reunion's current policy Is to maintain customers' Personal Information for no less than your state's required record retention requirements for the purpose of handling future coverage claims. For your protection, all requests made under this section must be In writing and must Include your notarized signature to establish your Identity. Where permitted by law we may charge a reasonable fee to cover the costs Incurred In responding to such requests. Please send requests to: Reunion Title Peter S. Graf General Counsel 2626 Howell Street. 10th Floor Dallas, Texas 75204 Changes to this Privacy Statement This privacy Statement may be amended from time to time consistent with applicable privacy laws. When we amend this Privacy Statement, we will post a notice of such changes on our website. The effective date of this Privacy Statement, as stated below, Indicates the last time this Privacy Statement was revised or materially changed. Effective Date: August 1, 2011 Form 5025548 (7-1-14) Page 12 of 12 TX T-1 Owner's Policy of Tide Insurance (Rev. 1-3-14) Texas FirstAinerican Title GENERAL ENDORSEMENT Issued by First American Title Insurance Company Attached to Policy No.: 2027 -153431 -RU File No.: 2027 -153431 -RU Attached to and made a part of First American Title Insurance Company Policy or Interim Construction Binder Number 2027 -153431 -RU, this 8th day of September, 2015. Schedule B is hereby amended to include the following: Item 6 (b) - Section 14 of the Conditions of this policy is hereby deleted. Nothing herein contained shall be construed as extending or changing the effective date of the aforesaid policy or interim construction binder, unless otherwise expressly stated. IN WITNESS HEREOF, the First American Title Insurance Company has caused this Endorsement to be executed by its President under the seal of the Company, but .this Endorsement is to be valid when it bears an authorized countersignature. Attest: S��i'+' V �Y• Jo",, _ Robn3on sumlaffy By its issuing agent, New Reunion Title, LLC TITLE 2745 Wind River Lane Denton, TX 76210 (940)382-3030 Fax(940)382-3377