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HomeMy WebLinkAboutTitle Insurance L 0 0 , OWNER POLICY OF TITLE INSURANCE - • = - • •- Issued by OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY * * TO 116261 3 ** Policy Number SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED 4, (it *'F IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS,OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY, * a Minnesota corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against * loss or damage,not exceeding the Amount of Insurance stated in Schedule A,sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any detect in or lien or encumbrance on the title; 3. Any statutory or constitutional mechanic's, contractor's, or materialman's lien for labor or material having its inception on or before Date of Policy; 4. Lack of a right to access to and from the land; 5. Lack of good and indefeasible title. The Company also will pay the costs,attorneys'fees and expenses incurred in defense of the title,as insured, but only to the extent provided in the Conditions and Stipulations. IN WITNESS HEREOF, the OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY has caused this policy to be executed by its President under the seal of the Company, but this policy is to be valid only when it bears an authorized countersignature, as of the date set forth in Schedule A. EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to(i)the occupancy, use, or enjoyment of the land;(ii)the character, dimensions or location of any improvement now or hereafter erected on the land; (iii)a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or(iv)environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations. except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by(a)above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking that has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy, (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; (e) resulting in loss or damage that would not have been sustained it the insured claimant had paid value for the estate or interest insured by this policy. 4. The refusal of any person to purchase, lease or lend money on the estate or interest covered hereby in the land described in Schedule A because of unmarketability of the title. 5. Any claim which arises out of the transaction vesting in the person named in paragraph 3 of Schedule A the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or other state or federal creditors' rights laws that is based on either (i)the transaction creating the estate or interest Insured by this Policy being deemed a fraudulent conveyance or fraudulent transfer or a voidable distribution or voidable dividend, (ii) the subordination or recharacterization of the estate or interest insured by this Policy as a result of the application of the doctrine of equitable subordination or(iii)the transaction creating the estate or interest insured by this Policy being deemed a preferential transfer except where the preferential transfer results from the failure of the Company or its issuing agent to timely file for record the instrument of transfer to the insured after delivery or the failure of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. AGGIELAND TITLE COMPANY 3740 Copperfield Dr.,Suite 101/Bryan,Texas 77802 OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY P.O.Box 4233/Bryan,Texas 7780.5 A Stock Company Phone:(979)731-8400•Fax:(979)731-8408 400 Second Avenue South,Minneapolis.Minnesota 55401 Issued through the Office o!: • (612)371-1111 kli, : OLD REPUBLIC TITLE i illEy PreSdenr n � NAl.thoriZed ,ed Countersignatory Attest b Secretary FORM T-1:OWNER POLICY(EFFECTIVE 4102) `_. .l+ ifPLl6 %t'^ef.:Fe .s� � kiTc+�F�..;5""'"C','.i�1`b_3• .' _�`Fl`atn2�u35 �F^<;t. CONDITIONS AND STIPULATIONS When, after the date of the policy, the insured notifies theCo pany as 1. Definition of Terms. required herein of a lien, encumbrance, adverse claim or other defect in title The following terms when used in this policy mean: to the estate or interest in the land insured by this policy that is not excluded (a) "insured":the insured named in Schedule A.and,subject to or excepted from the coverage of this policy, the Company shall promptly any rights or defenses the Company would have had against the named investigate the charge to determine whether the lien, encumbrance, adverse insured,those who succeed to the interest of the named insured by claim or defect is valid and not barred by law or statute. The Company shall operation of law as distinguished from purchase including, but not notify the insured in writing, within a reasonable time, of its determination as limited to,heirs,distributees,devisees,survivors,personal to the validity or invalidity of the insured's claim or charge under the policy. representatives,next of kin,or corporate,partnership or fiduciary If the Company concludes that the lien, encumbrance, adverse claim or successors,and specifically,without limitation,the following: defect is not covered by this policy, or was otherwise addressee in the (i) the successors in interest to a corporation,limited liability closing of the transaction in connection with which this policy was issued, company or limited liability partnership resulting from merger or consolidation or the Company shall specifically advise the insured of the reasons for its conversion or the distribution of the assets of the corporation or limited liability determination. If the Company concludes that the lien, encumbrance, adverse company or limited liability partnership upon partial or complete liquidation; claim or defect is valid, the Company shall take one of the following actions: (ii) the successors in interest to a general or limited (i)institute the necessary proceedings to clear the lien, encumbrance, adverse partnership or limited liability company or limited liability partnership claim or defect from the title to the estate as insured; (ii) indemnify the which dissolves but does not terminate; insured as provided in this policy; (iii) upon payment of appropriate premium (iii) the successors in interest to a general or limited and charges therefor, issue to the insured claimant or to a subsequent partnership resulting from the distribution of the assets of the general or owner, mortgagee or holder of the estate or interest in the land insured by limited partnership upon partial or complete liquidation; this policy, a policy of title insurance without exception for the lien, from the distribution(of) the the assetscessors in of the joint vtenturteuponlnt partial or complete liquidation; to the encumbrance, current valuerse claim or defect,of the property or, ifaid policy toa mortgagee policy, the amount of equal (v) the successor or substitute trustee(s)of a trustee named the loan; (iv) indemnify another title insurance company in connection withitsin a written trust instrument;or issuance of a policy(ies) of title insurance without exception for the lien, (vi) the successors in interest to a trustee or trust resulting from the encumbrance, adverse claim or defect; (v)secure a release or other document distribution of all or part of the assets of the trust to the beneficiaries thereof. discharging the lien, encumbrance, adverse claim or defect; or (vi) undertake (b) "insured claimant": an insured claiming loss or damage. a combination of (i) through(v) herein. (c) "knowledge" or "known": actual knowledge, not constructive knowledge or notice that may be imputed to an insured by reason of the 4. Defense and Prosecution of Actions:Dury of Insured public records as defined in this policy or any other records which impart Claimant to Cooperate. constructive notice of matters affecting the land, (a) Upon written request by the insured and subject to the options (d) "landti the land described or referred to in Schedule A, and contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of improvements affixed thereto that by law constitute real property. The term "land" does not include any property beyond the lines of the area described an insured in litigation in which any third party asserts a claim adverse to the or referred to in Schedule A, nor any right, title, interest, estate or easement title or interest as insured, but only as to those stated causes of action in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but alleging a defect, lien or encumbrance hort other matter insured against by this nothing herein shall modify or limit the extent to which a right of access to policy. The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) fp and from the land is insured by this policy. (e) "mortgage": mortgage, deed of trust, trust deed, or other security represent the insured as to those stated causes of action and shall not be instrument. liable for and will not pay the fees of any other counsel. The Company will (f) "public records": records established under state statutes at Date of not pay any fees, costs or expenses incurred by the insured in the defense Policy for the purpose of imparting constructive notice of matters relating to of those causes of action that allege matters not insured against by this policy. real properly to purchasers for value and without knowledge. With respect to (b) The Company shall have the right, at its own cost, to institute and Section 1(a)(iv)of the Exclusions From Coverage, "public records" also shall prosecute any action or proceeding or to do any other act that in its opinion include environmental protection liens filed in the records of the clerk of the may be necessary or desirable to establish the title to the estate or interest, United States district court for the district in which the land is located. as insured, or to prevent or reduce loss or damage to the insured. The (g) "access": legal right of access to the land and not the physical Company may take any appropriate action under the terms of this policy, condition of access. The coverage provided as to access does not assure the whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. ft the Company shall exercise its adequacy of access for the use intended. rights under this paragraph, it shall do so diligently. 2. Continuation of Insurance After Conveyance of Title. (c) Whenever the Company shall have brought an action or interposed as of Date of Policy a defense as required or permitted by the provisions of this policy, the The coverage of this policy shall continue in force in favor of an insured only so long as the insured retains an estate or Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the to appeal from any adverse judgment or order. insured shall have liability by reason of covenants of warranty made by the (d) In all cases where this policy permits or requires the Company to insured in any transfer or conveyance of the estate or interest. This policy sec or provide for the defense of any action or proceeding, the insured shall not continue in force in favor of any purchaser from the insured of shall secure to the Company the right to so prosecute or provide defense in (ii)an indebtedness secured by the action or proceeding, and all appeals therein, and permit the Company to either(i) an estate or interest in the land, or use, al its option, the name of the insured for this purpose. Whenever a purchase money mortgage given to the insured. requested by the Company, the insured, al the Company's expense, shall 3. Notice of Claim to be Given by Insured Claimant give the Company all reasonable aid(i)in any action or proceeding, securing The insured shall notifyevidence, obtaining witnesses, prosecuting or defending the action or the Company promptly in writing (i) in case of any litigation as set forth in Section 4(a) below, or(ii)in case knowledge proceeding, or effecting settlement, and(ii)in any other lawful act that in the shall come to an insured hereunder of any claim of title or interest that is opinion of the Company may be necessary or disirable to establish the title adverse to the title to the estate or interest, as insured, and that might cause to the estate or interest as insured. If the Company is prejudiced by the loss or damage for which the Company may be liable by virtue of this policy. failure of the insured to furnish the required cooperation, the Company s If prompt notice shall not be given to the Company, then as to the insured obligations to the insured under the policy shall terminate, including any all liability of the Company shall terminate with regard to the matter or liability or obligation to defend, prosecute, or continue any litigation, with matters for which prompt notice is required; provided, however, that failure to regard to the matter or matters requiring such cooperation. notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. (Continued on inside back cover) 5. Proof of Loss or Damage. • (a) The liability of the Company under this policy shall not exceed the In addition to and after the notices required under Section 3 of these least of: Conditions and Stipulations have been provided the Company, a proof of loss ( differencei the Amountin Schedule A; or between the of Insurance statedvae of the insured estate or interest or damage signed and sworn to by the insured claimant shall be furnished to (ii) the the Company within 91 days after the insured claimant shall ascertain the as insured and the value of the insured estate or interest subject to the facts giving rise to the loss or damage. The proof of loss or damage shall defect, lien or encumbrance insured against by this policy at the date the describe the defect in, or lien or encumbrance on the title, or other matter insured claimant is required to furnish to Company a proof of loss or insured against by this policy that constitutes the basis of loss or damage damage in accordance with Section 5 of these Conditions and Stipulations. and shall state, to the extent possible, the basis of calculating the amount of Date(b)of Policy nthesevent s than A80mpercentount f Insurance stated f in Schedulecheestate at the insuredthe loss orla damage If providethe Company required is prejudiced loss the faothe interest or the full consideration paid for the land, whichever is less, or if mclaimant obligations the insured under prooftheof or damage,terminate,the subsequent to the Date of Policy an improvement is erected on the land Company's abtyto the to defend, policyrshall ntewhich increases the value of the insured estate or interest by at least 20 including any liability or obligation to prosecute, or continue any litigation, with regard to the matter or matters requiring such proot of loss or percent over the ct to the oAllmount of Insurance stated in Schedule A, then this Policy damage. is r where no subsequent improvement has been made, as to any In addition, the insured claimant may reasonably be required to submit partial loss, shall only pay the pro in the proportion to examination under oath by any authorized representative of the Company that the amountthe of Companyinsurynshce ItaDate of Policy loss bearso rata the totalevalue of the and shall produce for examination, inspection and copying, at such Date o at estate or interes statatf Policy; or reasonable times and places as may be designated by any authorized insured e(ii) where a t at ae o improvement has been made, as to any representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a dale before or after Date partial loss, the Cofmpany Amountul only of lnpuyathe eloss prorata tahin the proportion n of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the insured the sum of the Amount f Insurance stated in Schedule A and the amount claimant shall grant its permission, in writing, for any authorized p ended for thhe improvement.othis paragraph shall mol apply to costs, attorneys' tees representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or and expenses for which the Company is liable under this policy, and shall control of a third party, which reasonably pertain to the loss or damage. All only apply to that portion of any loss which exceeds, in the aggregate, 10 information designated as confidential by the insured claimant provided to the percent ofthe will Insurance stated those in Schedule fees and A. Company pursuant to this Section shall not be disclosed to others unless, in expenses incurredein Companyaye onlylh Soseion 4 costs, these Conditions' fees and the reasonable judgment of the Company, it is necessary in the P administration of the claim. Failure of the insured claimant to submit for Stipulations. examination under oath, produce other reasonably requested information or Apportionment. grant permission to secure reasonably necessary information from third 8. A cons parties as required in this paragraph shall terminate any liability of the are not the eeland d described ssinesin Schedule A is lists of two ed affectmingoreoparoilmthat Company under this policy as to that claim. of the parcels but not all, the loss shall be computed and settled on a pro 6 Optionsbto Pay or Otherwise Settle Claims: Termination of rata basis as rata as to thelfthe value onount of Date ofnPol Pole icy each sender rs paratecy was pa cel to whole, Ipro n catty. In case of a claim under this policy, the Company shall have the exclusive of any improvements made subsequent to Date of Policy, unless a following additional options: liability or value has otherwise been agreed upon as to each parcel by the (a) To Pay or Tender Payment of the Amount of Insurance. Company and the insured at the time of the issuance of this policy and To pay or lender payment of the amount of insurance under this policy, shown by an express statement or by an endorsement attached to this together with any costs, attorneys' fees and expenses incurred by the insured policy. claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay. 9. Limitation of Liability. Upon the exercise by the Company of this option, all liability and (a) If the Company establishes the title, or removes the alleged defect, obligations to the insured under this policy, other than to make the payment lien or encumbrance, or cures the lack of a right of access to or from the required, shall terminate, including any liability or obligation to defend, land, all as insured, or takes action in accordance with Section 3 or Section prosecute, or continue any litigation, and the policy shall be surrendered to 6, in a reasonably diligent manner by any method, including litigation and the the Company for cancellation. completion of any appeals therefrom, it shall have fully performed its (b) To Pay or Otherwise Settle With Parties Other than the Insured or obligations with respect to that matter and shall not be liable for any loss or With the Insured Claimant. damage caused thereby. (i) to pay or otherwise settle with other parties for or in the name of (b) In the event of any litigation, including litigation by the Company or an insured claimant any claim insured against under this policy, together with with the Company's consent, the Company shall have no liability for loss or any costs, attorneys' fees and expenses incurred by the insured claimant, damage until there has been a iiiial determination by a court of competent which were authorized by the Company up to the time of payment and which jurisdiction, and disposition of all appeals therefrom, adverse to the title as the Company is obligated to pay; or insured. (ii) to pay or otherwise settle with the insured claimant the loss or (c) The Company shall not be liable for loss or damage to any insured damage provided for under this policy, together with any costs, attorneys' for liability voluntarily assumed by the insured in settling any claim or suit tees and expenses incurred by the insured claimant, which were authorized without the prior written consent of the Company. by the Company up to the time of payment and which the Company is obligated to pay. 10. Reduction of Insurance: Reduction or Termination of Liability. Upon the exercise by the Company of either of the options provided for All payments under this policy,except payments made for costs attorneys' in paragraphs(b)(i)or (ii), the Company's obligations to the insured under tees and expenses, shall reduce the amount of the insurance pro tanto. this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, 11. Liability Noncumulative. prosecute or continue any litigation. It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy 7. Determination, Extent of Liability and Coinsurance. insuring a mortgage to which exception is taken in Schedule B or to which This policy is a contract of indemnity against actual monetary loss or the insured has agreed, assumed, or taken subject, or which is hereafter damage sustained or incurred by the insured claimant who has suffered loss executed by an insured and which is a charge or lien on the estate or or damage by reason of matters insured against by this policy and only to interest described or referred to in Schedule A, and the amount so paid shall the extent herein described. be deemed a payment under this policy to the insured owner. (Continued on back cover) t.4 ,,_. .0V;et� z. .+.-,;.} asp t - - ..xx> ..,,. .r3`c';#'S;itN es iz�.+.F �. ,>iso' .' .`;!.r`,,.i'e",..G'.N I.2k,.ss 12 Payment of Loss Insured, unless the insured is an individual person (as disting:jished from a (a) No payment shall be made without producing this policy for corporation, trust, partnership, association or other legal entity). All arbitrable endorsement of the payment unless the policy has been lost or destroyed, in matters when the Amount of Insurance is in excess of$1,000,000 shall be which case proof of loss or destruction shall be furnished to the satisfaction arbitrated only when agreed to by both the Company and the Insured. of the Company. to thtration (b) When liability and the extent of loss or damage has been definitely her demand foruant arbitration iso mlicy ade aor, atthe unerCoption of the insured,t the Rules fixed in accordance with these Conditions and Stipulations, the loss or in effect at Date of Policy shall be binding upon the parties. The award may damage shall be payable within 30 days thereafter. include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. 13. Subrogation Upon Payment or Settlement (a) The Company's Right of Subrogation. nyJudgmentcorupon the ju awardctirendered by the Arbitralor(s)may be entered in Whenever the Company shall have settled and paid a claim under this The law of the situs of e any court having jurisdiction thereof. policy, all right of subrogation shall vest in the Company unaffected by any Title Insurance Arbitration Rules. land shall apply to an arbitration under the act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and A copy of the Rules may be obtained from the Company upon request. remedies that the insured claimant would have had against any person or 15. Liability Limited to This Policy.Policy Entire Contract property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights by the Comhpanyoticy is thegether entirre polcywithtl anddtscontr ctnbetween the attached and and remedies against any person or property necessary in order to perfect the Company. In interpreting any provision of this policy, this policy shall be this right of subrogation. The insured claimant shall permit the Company to construed as a whole. sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving and which arises om f of the status damoa9the title to thee, wheer ornestat based on interest irgence, these rights or remedies. covered It a payment on account of a claim does not fully cover the loss of the this police reby or by any action asserting such claim, shall be restricted to insured claimant, the Company shall be subrogated to these rights and remedies in the proportion that the Company's payment bears to the whole excepts by a writing endorsed tie eonr sement or attachedtohis he etocsigcan be made ned by either the amount of the loss. President, a Vice President, the Secretary, an Assistant Secretary, or If loss should result from any act of the insured claimant, as stated validating officer or authorized signatory of the Company. above, that act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against by this 16 Severabilifr policy that shall exceed the amount, if any, lost to the Company by reason of In the event any provision of the policy is held invalid or unenforceable the impairment by the insured claimant of the Company's right of under applicable law, the policy shall be deemed not to include that subrogation. (b) The Company's Rights Against Non Insured Obligors. provision, and all other provisions shall remain in full force and effect. The Company's right of subrogation against non-insured obligors shall 17 Notices, Where Sent_ exist and shall include, without limitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding writing irequi ed tore o l noticesged berfurnshed the Coto be givenhmpany e shall ncludeCompany anytheanumberin of any terms or conditions contained in those instruments that provide for this policy and shall be addressed to the Company at: Home Office: subrogation rights by reason of this policy. 400 Second Avenue South, Minneapolis, Minnesota 55401. 14. Arbitration. COPINTUnless prohibited by applicable law or unless this arbitration section is a outt aclaimrthat tyou have lffiiled,anycon act the agent orispute arise aboutywitepto the Coor mpany deleted by specific provision in Schedule B of this policy, either the Company that issued the policy. If the problem is not resolved,you also may write the or the insured may demand arbitration pursuant to the Title Arbitration Rules Texas Department of Insurance,P.O.Box 149104,Austin,TX 78714-9104, or the American Arbitration Association. Arbitrable matters may include, but Fax No.(512)305-7426 or call toll-free at 1-800-252-3439.This notice of are not limited to, any controversy or claim between the Company and the complaint procedure is for information only and does not become a part or Insured arising out of or relating to this policy, any service of the Company condition of this policy.OLD REPUBLIC NATIONAL TITLE INSURANCE in connection with its issuance or the breach of a policy provision or other COMPANY may be contacted toll-free at 1-888-678-1700 for information obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 concerning this policy or to submit a policyholder complaint. or less SHALL BE arbitrated at the request of either the Company or the FOR INFORMATION, OR TO MAKE A COMPLAINT, CALL: 1-888-678-1700 . ' - - NOTE:THIS POLICY VALID ONLY IF SCHEDULES A AND B ARE ATTACHED ' - OWNER POLICY OF TITLE INSURANCE SCHEDULE A G.F.No. 21282 Policy No. TO 1182613 Amount of Insurance: $3,403,842.00 Premium: $16,728.00 Date of Policy: December 19,2005,10:22 am 1. Name of Insured: Creek Meadows Partners,L.P. 2. The estate or interest in the land that is covered by this policy is: Fee Simple 3. Title to the estate or interest in the land is insured as vested in: Creek Meadows Partners,L.P. 4. The land referred to in this policy is described as follows: Tract One: All that certain tract or parcel of land,lying and being situated in the SAMUEL DAVIDSON LEAGUE,Abstract No.13 in Brazos County,Texas,and being a portion of a called 262.55 acre tract described as seven tracts by an Estate Deed from Betty V.Goss,B.F.Vance,Jr.and William R.Vance to VRV partners,recorded in Volume 1175, page 653 of the Official Records of Brazos County,Texas(O.R.B.C.); all of a called 1 acre tract described by a Quitclaim Deed from L.G.Jones to Vonnie Ray Vance recorded in Volume 509,page 786 of the Deed Records of Brazos County,Texas,(B.C.D.R.); a portion of a called 102.00 acre tract described by a Gift Deed from Vonnie Ray Vance to Betty V.Goss,B.F.Vance,Jr.and William R.Vance,Trustees of the VRV Trust,recorded in Volume 1020,page 325(O.R.B.C.); a portion of a called 1 acre tract described by a Deed from Gus Roy and wife,Hattie Roy to B.F.Vance,recorded in Volume 163,page 69(B.C.D.R.);and all of a called 2-3/5 acre tract described by a Deed from William H.Phelps and Rela May Rayon and husband Chester Rayon,to B.F.Vance,recorded in Volume 177, page 309(B.C.D.R.)and being more particularly described by metes and bounds as follows: BEGINNING at a 3/8-inch iron rod found bent marking the wet corner of Lot 8,Wellborn Oaks,according to the plat recorded in Volume 345,Page 635(B.C.D.R.),said iron rod being in the northeast line of said 1 acre tract (163/69)and in the southeast right-of-way line of Greens Prairie Road(a county maintained road); THENCE along the common line of Wellborn Oaks and said 1 acre tract(163/69) and said 262.55 acre tract for the following five(5)calls: 1) S 49°13' 20"E for a distance of 411.68 feet to a 3/8-inch iron rod found marking the west corner of Lot 9, Wellborn Oaks, 2) S 49°02' 18" E for a distance of 392.33 feet to a 3/8-inch iron rod found marking the west corner of Lot 10, Wellborn Oaks. 3) S 48°48'30"E for a distance of 983.70 feet to a 3/8-inch iron rod found marking the west corner of Lot 12, Wellborn Oaks, 4) S 48°30'49"E for a distance of 488.99 feet to a 3/8-inch iron rod found marking the west corner of Lot 13, Wellborn Oaks and 5) S 48°09'51"E for a distance of 388.51 feet to a 5/8-inch iron rod found for corner in the west right of way line of Greens Prairie Trail(based on a 100-foot width); THENCE through the said 262.55 acre tract and said 102.00 acre tract and along the west line of Greens Prairie Trail for the following five(5)calls: Old Republic National Title Insurance Company Page 1 Continuation of Schedule A Policy No. TO 1182613 1) 819.86 feet in a counter-clockwise direction along the arc of a curve having a central angle of 46°30'34',a radius of 1010.00 feet,a tangent of 434.03 feet and a long chord bearing S 18°31'56"W at a distance of 797.54 feet to a 1/2-inch iron rod set for the Point of Tangency, 2) S 04°43'21"E for a distance of 1452.01 feet to a 1/2-inch iron rod set for the Point of Curvature of a curve to the right, 3) 743.74 feet along the arc of said curve having a central angle of 47°05'23",a radius of 904.93 feet,a tangent of 394.32 feet and a long chord bearing S 18°49'20"W at a distance of 722.98 feet to a 1/2-inch iron rod set for the Point of Tangency, 4) S 42°22'02"W for a distance of 194.62 feet to a 1/2-inch iron rod set for the POint of Curvature of a curve to the right and 5) 1.40 feet along the arc of said curve having a central angle of 2°17'25",a radius of 35.00 feet,a tangent of 0.70 feet and a long chord bearing S 43°30'45"W at a distance of 1.40 feet to a fence corner marking the intersection of the fenced northeast margin of Royder Road(a varying width prescriptive right-of-way) THENCE along the fenced northeast margin of Royder Road for the following thirteen(13)calls: 1) N 67°00'21"W for a distance of 118.80 feet, 2) N 46°37'47"W for a distance of 49.98 feet, 3) N 38°43'42"W for a distance of 374.45 feet, 4) N 39°09'45"W for a distance of 66.70 feet, 5) N 41°19'26"W for a distance of 185.58 feet, 6) N 26°07'30"W for a distance of 24.96 feet, 7) N 73°21'29"W for a distance of 18.67 feet, 8) N 75°19'02"W for a distance of 19.44 feet to a 36"Post Oak, 9) N 47°29'47"W for a distance of 611.80 feet, 10) N 47°58'01"W for a distance of 385.49 feet, 11) N 49°00'00"W for a distance of 97.04 feet to a 24"Post Oak, 12) N 47°23'35"W for a distance of 655.50 feet and 13) N 39°13'11"W for a distance of 10.56 feet to a set 1/2-inch iron rod in the common line of the said 262.55 acre trace and the called 2-3/5 acre tract described as tract two in a release of lien to Johnny Wilborn and wife,Viola Wilborn,recorded in Volume 74,page 95 of the Release Records of Brazos County,Texas. THENCE N 42°26' 14"E along an interior northwest line of said 262.55 acre tract for a distance of 407.75 feet to a 5/8-inch iron rod set for the east corner of a called 1 acre tract described by a deed to Johnny Wilborn and wife, Viola Wilborn,recorded in Volume 113,page 361 (B.C.D.R.),and the south corner of the beforementionecl Vance 2- 3/5 acre tract; THENCE N 47°33'46"W along the southwest line of said Vance 2-3/5 acre tract for a distance of 555.00 feet to a 5/8-inch iron rod set for the north corner of a called 1-3/5 acre tract described by a deed to A.D.Tolbert,recorded in Volume 1012,page 621 (B.C.D.R.)and the south corner of a called 9 acre tract as described by a deed to Edsel G. Jones,recorded in Volume 203,Page 155(B.C.D.R.); THENCE N 42°26'14"E along the southeast line of said 9 acre tract for a distance of 630.00 feet to a rock found marking the east corner of said 9 acre tract and an interior west corner of said 262.55 acre tract; THENCE N 47°33'46"W along the common line of said 9 acre tract and said 262.55 acre tract for a distance of 630.00 feet to a 5/8-inch iron rod in the southeast line of the beforementioned Vance 1 acre tract marking the north corner of said 9 acre tract; THENCE S 42°26' 14"W along the northwest line of said 9 acre tract for a distance of 117.33 feet to a 5/8-inch iron rod set for the south corner of a called 1 acre tract as described by a deed to Tommie Townsend and wife,Lessiebell Townsend,recorded in Volume 94,page 404(B.C.D.R.); Old Republic National Title Insurance Company Page 2 Continuation of Schedule A Policy No. TO 1182613 THENCE N 47°33'46"W along the common line of said Townsend and Vance 1 acre tracts for a distance of 209.00 feet to a 5/8-inch iron rod set for the east corner of a called 1 acre tract described by a deed to Tommie Townsend recorded in Volume 120,page 217(B.C.D.R.)and a southwest corner of a called remainder of a 1 acre tract as described by a deed to Walter Hudlin,Will Hudlin and wife,Mary E.Hudlin,recorded in Volume 221,page 153 (B.C.D.R.); THENCE N 42°26' 14"E along the common line of said Vance 1 acre tract and said Hudlin tract for a distance of 22.17 feet to a 5/8-inch iron rod set for the east corner of a called 0.622 acre tract as described by a deed to Andrew 2,page 476 ronrrod found marking Tommiebers and wife, west corneell r of said 0 622 acre tract beabers,recorded in Volume rs N 49°10'54 W a Ra distanfor ce of 49.64 feet;erence a 1/2-inch t THENCE along the common line of said 0.622 acre tract and said Vance 1 acre tract for the following two(2)calls: 1) S 49°10'54"E for a distance of 51.62 feet to a 1/2-inch iron rod found and 2) N 40°58'56"E for a distance of 262.73 feet to a 1/2-inch iron rod found bent; THENCE N 41°42'31" W for a distance of 100.00 feet to a point in the centerline of a private road; THENCE along said private road for the following two(2)calls: 1) N 37°25' 18"W for a distance of 97.02 feet to a point and 2) N 44°10'49"W for a distance of 213.79 feet to a 5/8-inch iron rod set in the southeast line of said Greens Prairie Road(a County maintained Public Road); THENCE OF BEGINNING and gontaininsoutheast g 171 043 acres of land,more Prairie r Rss d for a distance of 1233.11 feet to the POINT Tract Two: MI that certain tract of land lying and being situated in the JESSE BLEDSOE SURVEY,Abstract No.71,and the SAMUEL DAVIDSON LEAGUE,Abstract No.13,Brazos County,Texas. Said tract being a portion of a called 262.55 acre tract described as Tract Seven by a Deed to VRV Partners recorded in Volume 1175,page 653 of the Official Records of Brazos County,Texas,and a portion or a called 102 acre tract as described by a aa deed to Betty the V. Goss,B.F.Vance,Jr.and William R Vance,Trustees of the VRV Trust,recorded in Volume 1020,page Official Records of Brazos county,Texas. Said tract being more particularly described by metes and bounds as follows: BEGINNING at a 5/8 inch iron rod found on the southwest line of Woodlake Subdivision,Section One,according to the Plat recorded in Volume 410,page 415 of the Deed Records of Brazos County,Texas,said iron rod found d marking the urnertcorner of said 22.55 acre tract and Wanda Goss recorded in Volume 2327,page 107 of the Offic e north corner of a called 5aacre al PublPublicRecorct as ds of Brazos byescribed a deed to Mary T County,Texas; THENCE S 42°23' 18"W along the common line of said 262.55 acre tract and said 50 acre tract for a distance of 2583.88 feet to a 5/8 inch iron rod found on the fenced northeast line of Royder Road; THENCE along the fenced northeast line of Royder Road for the following calls: N 49°54' 12"W for a distance of 162.76 feet to a point; N 53°19'39"W for a distance of 231.81 feet to a point; Old Republic National Title Insurance Company Page 3 Continuation of Schedule A Policy No. TO 1182613 N 54°27'00"W for a distance of 149.54 feet to a point; N 51°59'03"W for a distance of 261.98 feet to a 5/8 Inch iron rod set on the easterly line of Greens Prairie Trail,marking the beginning of a clockwise curve having a Radius of 35.00 feet; THENCE Along the easterly line of Greens Prairie Trail for the following calls: Along said curve through a central angle of 93°58'27"for an arc distance of 57.41 feet(Chord bears: N 04° 37'12"W-51.18 feet)to a 5/8 inch iron rod set marking the ending point of said curve. N 42°22'02"E for a distance of 182.81 feet to a 5/8 inch iron rod set marking the beginning of a counterclockwise curve having a Radius of 1004.93 feet; Along said curve through a central angle of 47°05'23"for an arc distance of 825.92 feet(Chord Bears:N 18°49'20"E-802.87 feet)to a 5/8 inch iron rod set marking the ending point of said curve; N 04°43'21"W for a distance of 1452.01 feet to a 5/8 inch iron rod set marking the beginning of a clockwise curve having a Radius of 910.00 feet; Along said curve through a Central Angle of 46°35'16"for an arc distance of 739.93 feet(Chord Bears: N 18°34'17"E-719.71 feet)to a point on the southwest line of Woodlake Subdivision,Section One,marking the north corner of this herein described tract: THENCE Along the common line of said 262.55 acre tract and Woodlake Subdivision,Section One,for the following calls: S 48°47'53"E for a distance of 339.63 feet to a 3/8 inch iron pipe found; S 48°28'25"E for a distance of 411.75 feet to a 1/2 inch iron rod found; S 49°07'32"E for a distance of 430.31 feet to a 1/2 inch iron rod found; S 49°00'25"E for a distance of 554.20 feet to a 3/8 inch iron pipe found; S 48°41'19"E for a distance of 621.03 feet to a 1/2 inch iron rod found; S 48"03'04"E for a distance of 159.58 feet to the POINT OF BEGINNING,containing 96.00 acres 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 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 No.2 of Schedule B. Old Republic National Title Insurance Company Page 4 OWNER POLICY OF TITLE INSURANCE SCHEDULE B G.F.No.21282 Policy No. TO 1182613 EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage(and the Company will not pay costs,attorneys'fees or expenses)that arise by reason of the terms and conditions of the leases or easements insured,if any,shown in Schedule A and the following matters exception): 2. Any discrepancies,conflicts,or shortages in area or boundary lines,or any encroachments or protrusions,or any overlapping of improvements. 3. Homestead or community property or survivorship rights,if any,of any spouse of any insured. 4. Any titles or rights asserted by anyone,including,but not limited to,persons,the public,corporations,governments or other entities, a. to tidelands,or lands comprising the shores or beds of navigable or perennial rivers and streams,lakes,bays,gulfs or oceans,or b. to lands beyond the line of harbor or bulkhead lines as established or changed by any government,or c. to filled-in lands,or artificial islands,or d. to statutory water rights,including riparian rights,or e. to the area extending from the line of mean low tide to the line of vegetation,or the rights of access to that area or easement along and across that area. 5. Standby fees,taxes and assessments by any taxing authority forthe 2due 6, do changeequent years;in land usage subsequent or Sequent ye but and subsequent taxes and assessments by any taxing authority prioryearsproperty e not those taxes or assessments for prior years because of an exemption granted to a previous owner of theunder 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(We must insert matters or delete this exception.): a. Vendor's lien retained in deed dated December 15,2005,recorded in Volume 7068,page 220,of the Official Records of Brazos County,Texas from VRV Partners,a Texas partnership to Creek Meadows Partners,and L.P. for the benefit of First Victoria National Bank as therein provided and all of the terms,provisions conditions of said instrument. b. Deed of Trust/Security Agreement-Financing Statement dated December 15,2005,recorded in Volume 7068, page 227,of the Official Records of Brazos County,Texas executed by Creek Meadows Partners,L.P.to Timothy C.Jones,Trustee,for the benefit of First Victoria National Bank as therein provided,and all of the terms,provisions and conditions of said instrument. c. Mineral Reservation as set out in deed dated December 15,2005 from VRV Partners,a Texas partnership to Old Republic National Title Insurance Company Page 1 Continuation of Schedule B Policy No. TO 1182613 Creek Meadows Partners,L.P.,recorded in Volume 7068,page 220, Official Records of Brazos County, Texas.Title to this interest not investigated subsequent to date of said instrument. d. Easements or claims of easements which are not recorded in the public records of Brazos County,Texas. e. Any portion of subject property lying within the boundaries of a public or private roadway whether dedicated or not. f. The policy will not cover and no liability is assumed for any portion of subject property which lies outside the perimeter fence of said property. g• Easement granted to Lone Star Gas Company by A.&M.Consolidated Independent School District as set out in instrument dated January 8,1951,recorded in Volume 148,page 479 of the Deed Records of Brazos County,Texas. (as to that portion out of the 2.7 acre tract,262/107) h. Easement granted to Lone Star Gas Company by B.F.Vance as set out in instrument dated March 20,1951, recorded in Volume 148,page 491 of the Deed Records of Brazos County,Texas. i• Easement granted to the City of Bryan by B.F.Vance as set out in instrument dated April 23,1956,recorded in Volume 174,page 167 of the Deed Records of Brazos County,Texas. (as to that portion out of the 102 acre parent tract) j. Easement granted to Wellborn Water Supply Corporation by Mrs.Vonnie Ray Vance as set out in instrument dated September 30,1968,recorded in Volume 273,page 180 of the Deed Records of Brazos County,Texas. k. Easement granted to Wellborn Water Supply Corporation by Mrs.Vonnie Ray Vance as set out in instrument dated July 30,1971,recorded in Volume 303,page 371 of the Deed Records of Brazos County, Texas. 1• Easement granted to Seminole Pipeline Company by Vonnie Ray Vance as set out in instrument dated December 27,1981,recorded in Volume 508,page 709 of the Deed Records of Brazos County,Texas. m. Easement together with a Relocation Agreement granted to Seminole Pipeline Company by VRV Partners and the County of Brazos as set out in instrument dated August 26,1996,recorded in Volume 2690,page 165, and supplemented in Agreement dated January 6,1997,recorded in Volume 2751,page 179 of the Official Public Records of Brazos County,Texas. n. Easement granted to Wellborn Special Utility District by VRV Partners as set out in instrument dated October 8, 1999,recorded in Volume 3645,page 276 of the Official Public Records of Brazos County,Texas. o. Easement granted to Wellborn Special Utility District by VRV Partners as set out in instrument dated March 3,1999,recorded in Volume 3645,page 284 of the Official Public Records of Brazos County,Texas. (as to that portion lying within the 102 acre parent tract) P. Easement granted to Wellborn Special Utility District by VRV Partners as set out in instrument dated March 19,1999,recorded in Volume 3645,page 286 of the Official Public Records of Brazos County,Texas. q. Conveyance of mineral&royalty interest from Vonnie Ray Vance to Betty V.Goss,B.J.Vance,Jr.and William R.Vance as set forth in instrument dated August 1,1979,recorded in Volume 430,page 385 of the Deed Records of Brazos County,Texas.Title to said interest has not been investigated subsequent to date thereof. r. Conveyance of mineral interest from Vonnie Ray Vance to Betty V.Goss,B.F.Vance,Jr. and William R. Old Republic National Title Insurance Company Page 2 Continuation of Schedule B Policy No. TO 1182613 Vance as set forth in instrument dated January 31, 1980,recorded in Volume 445,page 12 of the Deed Records of Brazos County,Texas.Title to said interest has not been investigated subsequent to date thereof. s. Conveyance of mineral interest from Vonnie Ray Vance to Betty V.Goss,B.F.Vance,Jr. and William R. Vance as set forth in instrument dated March 12,1981 ,recorded in Volume 476,page 43 of the Deed Records of Brazos County,Texas.Title to said interest has not been investigated subsequent to date thereof. t. Memorandum of Oil,Gas and Hydrocarbon Lease dated January 22,1992,between VRV Partners,a Texas General Partnership,owner of the surface estate and B.F.Vance,Jr.,William R.Vance and Betty Vance Goss,each individually and as a partner,and WSC Oil&Gas Corporation,recorded in Volume 1427,page 184 of the Official Public Records of Brazos County,Texas. Title to said interest has not been investigated subsequent to date thereof. u. There is expressly excluded from coverage hereunder,and this Company does not insure title to oil,gas and other minerals of every kind and character in,on and under the property herein described. v. Rights of parties in possession. Countersigned Aggieland Title Company • By Old Republic National Title Insurance Company Page 3 1111111111.10111111 (1114 �.,, G.F.No. 21282 Old Republic National Title Insurance Company Owner Policy Number: TO 1182613 Premium Amount Rate Rules Property County Liability Date Type Code 1 2 3 4 5 6 7 8 $16,728.00 1200 41 $3,403,842.00 12/19/2005 3210 0700 0710 t