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HomeMy WebLinkAboutTitle InsuranceTHE FOLLOWING COMMITMENT FOR TITLE INSURANCE IS NOT VALID UNLESS YOUR NAME AND THE POLICY AMOUNT ARE SHOWN IN SCHEDULE A. AND OUR AUTHORIZED REPRESENTATIVE HAS COUNTERSIGNED BELOW. COMMITMENT FOR TITLE INSURANCE ISSUED BY CHICAGO TITLE INSURANCE COMPANY We, Chicago Title Insurance Company, will issue our title insurance policy or policies (the Policy) to You (the proposed insured) upon payment of the premium and other charges due, and compliance with the requirements in Schedule B and Schedule C. Our Policy will be in the form approved by the Texas Department of Insurance at the date of issuance, and will insure your interest in the land described in Schedule A. The estimated premium for our Policy and applicable endorsements is shown on Schedule D. There may be additional charges such as recording fees, and expedited delivery expenses. This Commitment ends ninety (90) days from the effective date, unless the Policy is issued sooner, or failure to issue the Policy is our fault. Our liability and obligations to you are under the express terms of this Commitment and end when this Commitment expires. CHICAGO TITLE INSURANCE COMPANY n.: �F ARESi Pmnubn: �1 .cro�ary Authorized Signature CONDITIONS AND STIPULATIONS 1. If you have actual knowledge of any matter which may affect the title or mortgage covered by this Commitment, that is not shown in Schedule B, you must notify us in writing. If you do not notify us in writing, our liability to you is ended or reduced to the extent that your failure to notify us affects our liability. If you do notify us, or we learn of such matter, we may amend Schedule B, but we will not be relieved of liability already incurred. 2. Our liability is only to you, and others who are included in the definition ofinsured in the Policy to be issued. Our liability is only for actual loss incurred in your reliance on this Commitment to comply with its requirements or to acquire the interest in the land. Our liability is limited to the amount shown in Schedule A of this Commitment and will be subject to the following terms of the Policy: Insuring Provisions, Conditions and Stipulations, and Exclusions. OCHICAGO TITLE INSURANCE COMPANY TEXAS TITLE INSURANCE INFORMATION Title Insurance insures you against loss resulting from El seguro de titulo le asegura en relacion a certain risks to your title. perdidas resultantes de ciertos riesgos que pueden The Commitment for Title Insurance is the Title afectar el titulo de su propiedad. Insurance Company's promise to issue the Title El Compromiso para Segura de Titulo es la promesa de la Insurance Policy. The Commitment is a legal document. compania aseguradora de titulos de emitir la polizade You should review it carefully to completely seguro de titulo. El Compromiso es on documento legal. understand it before your closing date. Usted debe leerlo cuidadosamentey entenderlo complemente antes de la fecha Para finalizarso transaccion. Your Commitment for Title Insurance is a legal contract between you and us. The Commitment is not an opinion or report of your title. It is a contract to issue you a Policy subject to the Commitment's terms and requirements. Before issuing a Commitment for Title Insurance (the Commitment) or a Title Insurance Policy (the Policy), the Title Insurance Company (the Company) determines whether the title is insurable. This determination has already been made. Part of that determination involves the Company's decision to insure the title except for certain risks that will not be covered by the Policy. Some of these risks are listed in Schedule B of the attached Commitment as Exceptions. Other risks are stated in the Policy as Exclusions. These risks will not be covered by the Policy. The Policy is not an abstract of title nor does a Company have an obligation to determine the ownership of any mineral interest. ---MINERALS AND MINERAL RIGHTS may not be covered by the Policy. The Company may be unwilling to insure title unless there is an exclusion or all exception as to Minerals and Mineral Rights in the Policy, Optional endorsements insuring certain risks involving minerals, and the use of improvements (excluding lawns, shrubbery and trees) and permanent buildings may be available for purchase. Neither this Policy, nor the optional endorsements, insure that the purchaser has title to the mineral rights related to the surface estate. Another part of the determination involves whether the promise to insure is conditioned upon certain requirements being met. Schedule C of the Commitment lists these requirements that must be satisfied or the Company will refuse to cover them. You may want to discuss any matters shown in Schedules B and C of the Commitment with an attorney. These matters will affect your title and your use of the land. When your Policy is issued, the coverage will be limited by the Policy's Exception, Exclusions and Conditions, defined below. --EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular instance. Exceptions are shown on Schedule B or discussed in Schedule C of the Commitment. They can also be added if you do not comply with the Conditions section of the Commitment. When the Policy is issued, all Exceptions will be on Schedule B of the Policy. ---EXCLUSIONS are title risks that a Policy generally does not cover. Exclusions are contained in the Policy but not shown or discussed in the Commitment. --CONDITIONS are additional provisions that qualify or limit your coverage. Conditions include your responsibilities and those of the Company. They are contained in the Policy but not shown or discussed in the Commitment. The Policy Conditions are not the same as the Commitment Conditions. You can get a copy of the policy form approved by the Texas Department of Insurance by calling Chicago Title Insurance Company at 1-800-442-4303 or by calling the title insurance agent that issued the Commitment. The Texas Department of Insurance may revise the policy form from time to time. You can also get a brochure that explains the Policy from the Texas Department of Insurance by calling 1-800-252- 3439 Form No. 72C 13443 (11/2009) Commi6nent For Title Insurance (T-7) Before the Policy is issued, you may request changes in the Policy. Some of the changes to consider are: ---Request amendment of the "area and boundary" exception (Schedule B, paragraph 2). To get this amendment, you must furnish a survey and comply with other requirements of the Company. On the Owner's Policy, you must pay an additional premium for the amendment. If the survey is acceptable to the Company and if the Company's other requirements are met, your Policy will insure you against loss because of discrepancies or conflicts in boundary lines, encroachments or protrusions, or overlapping of improvements. The Company may then decide not to insure against specific boundary or survey problems by [Waking special exceptions in the Policy. Whether or not you request amendment of the "area and boundary" exception, you should determine whether you want to purchase and review a survey if a survey is not being provided to you. ---Allow the Company to add an exception to "rights of parties in possession." If you refuse this exception, the Company or the title insurance agent may inspect the property. The Company may except to and not insure you against the rights of specific persons, such as renters, adverse owners or easement holders who occupy the land. The Company may charge you for the inspection. If you want to make your own inspection, you must sign a Waiver of Inspection form and allow the Company to add this exception to your Policy. The entire premium for a Policy must be paid when the Policy is issued. You will not owe any additional premiums unless you want to increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement. Form No. 72C13443 (11 /2009) Commitment For Title Insurance (T-7) DELETION OF ARBITRATION PROVISION (Not applicable to the Texas Residential Owner's Policy) Arbitration is a common form of alternative dispute resolution. It can be a quicker and cheaper means to settle a dispute with your Title Insurance Company. However, if you agree to arbitrate, you give up your right to take the Title Company to court and your rights to discovery of evidence may be limited in the arbitration process. In addition, you cannot usually appeal an arbitrator's award. Your policy contains an arbitration provision (shown below). It allows you or the Company to require arbitration if the amount of insurance is $2,000,000 or less. If you want to retain your right to sue the Company in case of a dispute over a claim, you must request deletion of the arbitration provision before the policy is issued. You can do this by signing this form and returning it to the Company at or before the closing of your real estate transaction or by writing to the Company. The arbitration provision in the Policy is as follows: "Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ("Rules"). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured, unless the Insured is an individual person (as distinguished from an Entity). All arbitrable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction." SIGNATURE DATE Form No. 72C13443 (11/2009) Commitment For Title Insurance (T-7) Fidelity National Financial, Inc. Privacy Statement Fidelity National Financial, Inc. and its subsidiaries ("FNF") 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 FNF'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. FNF follows the privacy practices described in this Privacy Statement and, depending on the business performed, FNF companies may share information as described herein. Personal Information Collected We may collect Personal Information about you from the following sources: • Infomation we receive from you on applications or other forms, such as your name, address, social security number, tax identification number, asset information, and income information; • Information we receive 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; • Information about your transactions with or services performed by us, our affiliates, or others, such as information concerning your policy, premiums, payment history, information about your home or other real property, information fiom lenders and other third parties involved in such transaction, account balances, and credit card information; and • Information we receive from consumer or other reporting agencies and publicly recorded documents. Disclosure of Personal Information We may provide your Personal Information (excluding information we receive from consumer or other credit reporting agencies) to various individuals and companies, as permitted by law, without obtaining your prior authorization. Such laws do not allow consumers to restrict these disclosures. Disclosures may include, without limitation, the following: • To insurance agents, brokers, representatives, support organizations, or others to provide you with services you have requested, and to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or nondisclosure in connection with an insurance transaction; • To third -party contractors or service providers for the purpose of determining your eligibility for an insurance benefit or payment and/or providing you with services you have requested; • To an insurance regulatory authority, or a lawenforcement or other governmental authority, in a civil action, in connection with a subpoena or a governmental investigation; • To companies that perform marketing services on our behalf or to other financial institutions with which Ave have joint marketing agreements; and/or • To leaders, lien holders, judgment creditors, or other parties claiming an encumbrance or an interest in title whose claim or interest mast be determined, settled, paid or released prior to a title or escrow closing. We may also disclose your Personal Information to others when Ave believe, in good faith, that such disclosure is reasonably necessary to comply with the Imv or to protect the safety of our customers, employees, or property and/or to comply with a judicial proceeding, coot order or legal process. Disclosure to Affiliated Companies - We are permitted by law to share your time, address and facts about your transaction with other FNF companies, such as insurance companies, agents, and other real estate service providers to provide you with services you have requested, for marketing or product development research, or to market products or services to you. We do not, however, disclose information we collect from consumer or credit reporting agencies with our affiliates or others without your consent, in conformity with applicable law, unless such disclosure is otherwise permitted by law. Disclosure to Nonaffiliated Third Parties - We do not disclose Personal Information about our customers or former customers to nonaffiliated third parties, except as outlined herein or as otherwise permitted by law. Confidentiality and Security of Personal Information We restrict access to Personal Information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard Personal Information. Access to Personal Information/ Requests for Correction, Amendment, or Deletion of Personal Information As required by applicable law, Ave 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, FNF's current policy is to maintain customers' Personal Information for no less than your state's re aired recoil retention requirements for the ournose of handling future coveriate 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 imesponding to such requests. Please send requests to: ChiefPrivacy Officer Fidelity National Financial, Inc. 601 Riverside Avenue Jacksonville, FL 32204 Changes to this Privacy Statement This Privacy Statement may be amended from time to time consistent with applicable privacy laws. When Ave amend this Privacy Statement, we will post a notice of such changes on our website. The effective date of this Privacy Statement, as stated above, indicates the last time this Privacy Statement was revised or nutlet ially changed. Form No. 72C13443 (11/2009) Commitment For Title Insurance (T-7) COMMITMENT FOR TITLE INSURANCE Issued By Chicago Title Insurance Company SCHEDULE A Effective Date: March 19, 2012, 8:00 am GFNo. 1911717113 Issued: April 13, 2012, 8:00 am The policy or policies to be issued are: (a) OWNER'S POLICY OF TITLE INSURANCE (Form T-1) (Not applicable for improved one -to -four family residential real estate) Policy Amount: $2,601,988.70 PROPOSED INSURED: FFC Equity Holdings, LP or assigns (b) TEXAS RESIDENTIAL OWNER'S POLICY OF TITLE INSURANCE - ONE -TO -FOUR FAMILY RESIDENCES (Form T-IR) Policy Amount: PROPOSED INSURED: (c) LOAN POLICY OF TITLE INSURANCE (Form T-2) Policy Amount: PROPOSED INSURED: Proposed Borrower: FFC Equity Holdings, LP or assigns (d) TEXAS SHORT FORM RESIDENTIAL LOAN POLICY OF TITLE INSURANCE (Form T-2R) Policy Amount: PROPOSED INSURED: Proposed Borrower: (e) LOAN TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN (Form T-13) Binder Amount: PROPOSED INSURED: Proposed Borrower: (t) OTHER Policy Amount: PROPOSED INSURED: 2. The interest in the land covered by this Commitment is: Fee Simple 3. Record title to the land on the Effective Date appears to be vested in: Lieven J. Van Riet, Trustee 4. Legal description of the land: TRACT I: Being all of that certain tract or parcel of land containing 31.286 acres, lying and being situated in the James Erwin Survey, A-119, Brazos County, Texas and being part of the 208.523 acre tract described in the deed from Bandurn Corporation to Indivi 16.011 acre tract conveyed to Indiviso Corporation recorded in Volume 3812, Page 320 of the Official Records of Brazos County (O.R.B.C.) and being more particularly described by metes and bounds attached hereto. TRACT II: Being all of that certain tract or parcel of land containing 116.352 acres, lying and being situated in the James Erwin Survey, A-119, Brazos County, Texas and being part of the 208.523 acre tract described in the deed from Bandura Corporation to Indivi 16.011 acre tract conveyed to Indiviso Corporation recorded in Volume 3812, Page 320 of the Official Records of Brazos County (O.R.B.C.) and being more particularly described by metes and bounds attached hereto. NOTE: This Company does not represent that the above square footage and/or acreage amounts are correct. FORM T-7: Coun nitment for Title Insurance Page I COMMITMENT FOR TITLE INSURANCE Issued By Chicago Title Insurance Company SCHEDULE B EXCEPTIONS FROM COVERAGE In addition to the Exclusions and Conditions and Stipulations, your Policy will not cover loss, costs, attorneys' fees, and expenses resulting from: 1. Tile --fII}towing-resttictive'covemmrts­of iecoi itemized-relaw-fife-mast-eitherinsertspecifrc-r2cording-data-or-deieterthis exception). 2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping ofimprovements. 3. Homestead or community property or survivorship rights, if any, of any spouse of any insured. (Applies to the Owner's Policy only.) 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. (Applies to the Owner's Policy only.) 5. Standby fees, taxes and assessments by any taxing authority for the year 2011, 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. (If Texas Short Form Residential Loan Policy (T-2R) is issued, that policy will substitute "which become due and payable subsequent to Date of Policy" in lieu of "for the year and subsequent years.") 6. The terms and conditions of the documents creating your interest in the land. 7. Materials furnished or labor performed in connection with planned construction before signing and delivering the lien document described in Schedule A, if the land is part of the homestead of the owner. (Applies to the Loan Title Policy Binder on Interim Construction Loan only, and may be deleted if satisfactory evidence is furnished to us before a binder is issued.) 8. Liens and leases that affect the title to the land, but that are subordinate to the lien of the insured mortgage. (Applies to Loan Policy (T-2) only.) 9. The Exceptions from Coverage and Express Insurance in Schedule B of the Texas Short Form Residential Loan Policy (T- 2R). (Applies to Texas Short Form Residential Loan Policy (T-2R) only. Separate exceptions 1 through 8 of this Schedule B do not apply to the Texas Short Form Residential Loan Policy (T-2R). FORM T-7: Commitment for Title Insurance Page 2 Continuation of Schedule B GFNo. 1911717113 10. 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. Rights of parties in possession. (OWNER POLICY ONLY) b. Any and all leases, recorded or unrecorded, with rights of tenants in possession. C. Any portion of subject property that lies within a road right-of-way, public or private. d. Intentionally deleted. e. Terms, conditions and stipulations contained in that certain right of way and surface damage agreement executed by Lillian Jones Kurz and Magdalen Hanley to Inexco Oil Company, dated March 29, 1985, recorded in Volume 782, Page 47, Official Records of Brazos County, Texas. I. Intentionally deleted. g. Interest in and to all coal, lignite, oil, gas and other minerals, and all rights incident thereto, contained in instrument dated January 22, 1990, recorded on January 29, 1990, in Volume 1164, Page 849, Official Records of Brazos County, Texas. Reference to which instrument is here made for particulars. No further search of title has been made as to the interest evidenced by this instrument, and the Company makes no representation as to the ownership or holder of such interest. h. Interest in and to all coal, lignite, oil, gas and other minerals, and all rights incident thereto, contained in instrument dated July 17,1992, recorded on July 30,1992, in Volume 1562, Page 14, Official Records of Brazos County, Texas. Reference to which instrument is here made for particulars. No further search of title has been made as to the interest evidenced by this instrument, and the Company makes no representation as to the ownership or holder of such interest. i. Interest in and to all coal, lignite, oil, gas and other minerals, and all rights incident thereto, contained in instrument dated August 2, 1996, recorded on August 9, 1996, in Volume 2662, Page 312, Official Records of Brazos County, Texas. Reference to which instrument is here made for particulars. No further search of title has been made as to the interest evidenced by this instrument, and the Company makes no representation as to the ownership or holder of such interest. j. Interest in and to all coal, lignite, oil, gas and other minerals, and all rights incident thereto, contained in instrument dated April 14, 2000, recorded on April I8, 2000, in Volume 3783, Page 194, Official Records of Brazos County, Texas. Reference to which instrument is here made for particulars. No further search of title has been made as to the interest evidenced by this instrument, and the Company makes no representation as to the ownership or holder of such interest. k. Interest in and to all coal, lignite, oil, gas and other minerals, and all rights incident thereto, contained in instrument dated April 14, 2000, recorded on April 18, 2000, in Volume 3783, Page 196, Official Records of Brazos County, Texas. Reference to which instrument is here made for particulars. No further search of title has been made as to the interest evidenced by this instrument, and the Company makes no representation as to the ownership or holder of such interest. Lease for coal, lignite, oil, gas or other minerals, together with rights incident thereto, dated February 4, 1991, by and between Magdalen Hanley, as Lessor, and Threshold Exploration, Inc., Lessee, recorded on February 25,1991, in Volume 1239, Page 865; Ratification by instrument recorded in Volume 1253, Page 222, and in Volume 1329, Page 271; amended by instrument recorded in Volume 1342, Page 36, and by Volume 2068, Page 151, corrected by Volume 2103, Page 280, all of the Official Records of Brazos County, Texas. Reference to which instrument is here made for particulars. No further search for title has been made as to the interest evidenced by this instrument, and the Company makes no representation as to the ownership or holder of such interest. FORM T-7: Commitment for Title Insurance Page 3 Continuation of Schedule B GFNo. 1911717113 M. Lease for coal, lignite, oil, gas or other minerals, together with rights incident thereto, dated March 11, 1994, by and between Magdalen Hanley, Individually and as Independent Executrix of Estate of John Hanley, Jr., Deceased and as Trustee under the will of John Hanley, Jr., Deceased, as Lessor, and Balser Exploration Company, as Lessee, recorded on March 28, 1994, in Volume 2068, Page 157 of the Official Records of Brazos County, Texas. Reference to which instrument is here made for particulars. No further search for title has been made as to the interest evidenced by this instrument, and the Company makes no representation as to the ownership or holder of such interest. H. Surface waiver executed by Lillian J. Kurz, John Hanley, Individually and as Co -Trustee of the L.J. Kurz Trust No. 2, William Hanley, Thomas Hanley, and Robert Thomas Collmer, Co -Trustee of the L.J. Kurz Trust No. 2, dated April 12, 2000, recorded in Volume 3783, Page 191, Official Records of Brazos County, Texas. Reference to which instrument is here made for particulars. No further search of title has been made as to the interests evidenced by this instrument, and the Company makes no representation as to the ownership or holder of such interest. o. Designation of Unit (Kurz No. 1) executed by United Oil & Minerals, Inc. and Threshold Exploration, Inc., dated September 24, 1991, recorded in Volume 1355, Page 23; amended by instrument recorded in Volume 1365, Page 255; amended by instrument recorded in Volume 2311, Page 80, all of the Official Records of Brazos County, Texas. Reference to which instrument is here made for particulars. No further search of title has been made as to the interest evidenced by this instrument, and the Company makes no representation as to the ownership or holder of such interest. P. The Company shall have no liability for, nor responsibility to defend, any part of the property described herein against any right, title, interest or claim (valid or invalid) of any character had or asserted by the State of Texas or by any other government or governmental authority or by the public generally in or to any portions of the herein described property that may be within the bed of Hopes Creels or any easement along or abutting the same; or any filled in portion thereof, artificial island therein, riparian or littoral rights pertaining thereto, and any areas affected by changes thereof due to erosion, evulsion or accretion. q. Survey prepared December 6, 2011, by Kevin R. McClure, R.P.L.S. No. 5650, reflects the following matters: 1.) Part of a 210 feet Private Drainage Easement situated along the Southerly property line of Tract I, as shown on the Final Plat of Great Oaks Subdivision recorded in Volume 4150, Page 295, of the Official Records of Brazos County, Texas. 2.) Encroachment and/or overlap of fences over and across the subject property. 3.) Wellborn Water Supply Corp. water line traversing the subject property, with no easement of record. 4.) Guy anchors located in four separate locations along the Northerly property line of Tract II. 5.) Abandoned pipeline as marked on the ground traversing the subject property, together with abandoned oil well pad as shown thereon. FORM T-7: Commitment for Title Insurance Page 4 COMMITMENT FOR TITLE INSURANCE Issued By Chicago Title Insurance Company SCHEDULE C Your Policy will not cover loss, costs, attorneys' fees, and expenses resulting from the following requirements that will appear as Exceptions in Schedule B of the Policy, unless you dispose of these matters to our satisfaction, before the date the Policy is issued: Documents creating your title or interest must be approved by us and must be signed, notarized and filed for record. 2. Satisfactory evidence must be provided that: a. no person occupying the land claims any interest in that land against the persons named in paragraph 3 of Schedule A, b. all standby fees, taxes, assessments and charges against the property have been paid, C. all improvements or repairs to the property are completed and accepted by the owner, and that all contractors, subcontractors, laborers and suppliers have been fully paid, and that no mechanic's, laborer's or materialmen's liens have attached to the property, d. there is legal right of access to and from the land, C. (on a Loan Policy only) restrictions have not been and will not be violated that affect the validity and priority of the insured mortgage. 3. You must pay the seller or borrower the agreed amount for your property or interest. 4. Any defect, lien or other matter that may affect title to the land or interest insured, that arises or is filed after the effective date of this Commitment. 5. We find no outstanding liens of record affecting the subject property. Inquiry should be made concerning the existence of any unrecorded lien(s) or other indebtedness which could rise to any security interest claim in the subject property. 6. We must be furnished the marital status of the record owner(s), from the date of acquisition to the present time. If the record owner(s) is/are married, we require either (i) the joinder of the spouse; or (ii) an affidavit from the spouse of the owner disclaiming the property as part of any homestead and stating that the property is under the sole management and control of the record owner(s). FORM T-7: Commitment for Title Insurance Page 5 COMMITMENT FOR TITLE INSURANCE SCHEDULE D GFNo. 1911717113 Effective Date: March 19, 2012, Pursuant to the requirements of Rule P-21, Basic Manual of Rules, Rates and Forms for the writing of Title Insurance in the State of Texas, the following disclosures are made: I. The following individuals are directors and/or officers, as indicated, of the Title Insurance Company issuing this Commitment Officers: President Executive Vice President Secretary Treasurer Raymond Randall Quirk Anthony John Park Michael Louis Gravelle Daniel Kennedy Murphy Directors: Christopher Abbinante, Erika Meinhardt Raymond Randall Quirk Roger Scott Jewkes Anthony John Park Theodore L. Kessner John Arthur Wunderlich Fidelity National Financial, Inc. owns 100%of Fidelity National Title Group, Inc., which owns 100%of Chicago Title and Trust Company, which owns 100% of Chicago Title Insurance Company. 2. As to StarTex Title Company, LLC (Title Insurance Agent), the following disclosures are made: If Agent is a corporation, the shareholders owning or controlling, directly or indirectly 1% or more of the shares of Agent as of the last day of the year preceding the date hereinabove set forth are as follows (or owning or controlling 10% or more of an entity that owns 1% or more of the Agent) StarTex Title Holdings, LLC - 55% and Stewart Title Company - 45% Individuals, firms, partnerships, associations, corporations, trusts or other entities owning 10% or more of those entities referred to in item no. B-1 hereinabove as of the last day of the year preceding the date hereinabove set forth are as follows: StarTex Title Holdings, LLC - Sid W. Terry - 66.67%; Albert Butler - 33.33%, and Stewart Title Guaranty Company 3. You are entitled to receive advance disclosure of settlement charges in connection with the proposed transaction to which this commitment relates. Upon your request, such disclosure will be made to you. Additionally, the name of any person, film or corporation receiving a portion of the premium from the settlement of this transaction will be disclosed on the closing or settlement statement. You are further advised that the estimated title premium" is: Owner's Policy Loan Policy Endorsement Charges Other Total $12,461.00 $100.00 $0.00 $0.00 $12,561.00 Of this total amount: 15% will be paid to the policy issuing Title Insurance Company: 85% will be retained by the issuing Title Insurance Agent; and the remainder of the estimated premium will be paid to other parties as follows: Amount To Whom For Services 1. "The estimated premium is based upon information furnished to us as of the date of this Commitment for Title Insurance. Final determination of the amount of the premium will be made at closing in accordance with the Rules and Regulations adopted by the Commissioner of Insurance." FORM T-7: Commitment for Title Insurance Page 6 TEXAS TITLE INSURANCE INFORMATION Title insurance insures you against loss resulting from certain risks El seguro de titulo le asegum en relaci6n a perdidas resultantes de to your title. ciertos riesgos que pueden afectar el titulo de so propriedad. The commitment for Title Insurance is the title insurance company's El Compromiso para Seguro de Titulo es Is promesa de la compahfa promise to issue the title insurance policy. The commitment is a aseguradora de flues de emitir In p6liza de seguro de titulo. El legal document. You should review it carefully to completely Compromiso es on documento legal. Usted riche leerlo understand it before your closing date. cuidadosamente y endenterlo complemente antes de Is fecha para finalizar so transacci6n. Your Commitment of Title insurance is a legal contract between you and us. The Commitment is not an opinion or report of your title. It is a contract to issue you a policy subject to the Commitment's terms and requirements. Before issuing a Commitment for Title insurance (the Commitment) or a Title Insurance Policy (the Policy), the Title Insurance Company (the Company) determines whether the title is insurable. This determination has already been made. Part of that determination involves the Company's decision to insure the title except for certain risks that will not be covered by the Policy. Some of these risks are listed in Schedule B of the attached Commitment as Exceptions. Other risks are stated in the Policy as Exclusions. These risks will not be covered by the Policy. The Policy is not an abstract of title nor does a Company have an obligation to determine the ownership of any mineral interest. ---MINERALS AND MINERAL RIGHTS may not be covered by the Policy. The Company may be unwilling to insure title unless there is an exclusion or an exception as to Minerals and Mineral Rights in the Policy. Optional endorsements insuring certain risks involving minerals, and the use of improvements (excluding lawns, shrubbery and trees) and permanent buildings may be available for purchase. If the title insurer issues the title policy with an exclusion or exception to the minerals and mineral rights, neither this Policy, nor the optional endorsements, ensure that the purchaser has title to the mineral rights related to the surface estate. Another part of the determination involves whether the promise to insure is conditioned upon certain requirements being met. Schedule C of the Commitment lists these requirements that must be satisfied or the Company will refuse to cover them. You may want to discuss any matters shown in Schedules B and C of the Commitment with an attorney. These matters will affect your title and your use of the land. When your policy is issued, the coverage will be limited by the Policy's Exceptions, Exclusions and Conditions, defined below. ---EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular instance. Exceptions are shown on Schedule B or discussed in Schedule C of the Commitment. They can also be added if you do not comply with the Conditions section of the Commitment. When the policy is issued, all Exceptions will be on Schedule B of the Policy. ---EXCLUSIONS are title risks that a Policy generally does not cover. Exclusions are contained in the Policy but not shown or discussed in the Commitment. ---CONDITIONS are additional provisions that qualify or limit you coverage. Conditions include your responsibilities and those of the Company. They are contained in the Policy but not shown or discussed in the Commitment. The Policy Conditions are not the same as the Commitment Conditions. You can get a copy of the policy form approved by the Texas Department of Insurance by calling the Title Insurance Company at (800) 442-7067 or by calling the title insurance agent that issued the Commitment. The Texas Department of Insurance may revise the policy form from time to time. You can also get a brochure that explains the policy from the Texas Department of Insurance by calling 1-800-252-3439. Before the Policy is issued, you may request changes in the Policy. Some of the changes to consider are: ---Request amendment of the "area and boundary" exception (Schedule B, paragraph 2). To get this amendment, you must furnish a survey and comply with other requirements of the Company. On the Owner's Policy, you must pay an additional premium for the amendment. If the survey is acceptable to the Company and if the Company's other requirements are met, your Policy will insure you against loss because of discrepancies or conflicts in boundary lines, encroachments or protrusions, or overlapping of improvements. The Company may then decide not to insure against specific boundary or survey problems by making special exceptions in the Policy. Whether or not you request amendment of the "area and boundary" exception, you should determine whether you want to purchase and review a survey if a survey is not being provided to you. ---Allow the Company to add an exception to "rights of parties in possession." If you refuse this exception, the Company or the title insurance agent may inspect the property. The Company may except to and not insure you against the rights of specific persons, such as renters, adverse owners or easement holders who occupy the land. The Company may charge you for the inspection. If you want to make your own inspection, you must sign a Waiver of Inspection form and allow the Company to add this exception to your Policy. The entire premium for a Policy must be paid when the Policy is issued. You will not owe any additional premiums unless you want to increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement. FORM T-7: Commitment for Title Insurance Page 7 DELETION OF ARBITRATION PROVISION (Not applicable to the Texas Residential Owner's Policy) Arbitration is a common form of alternative dispute resolution. It can be a quicker and cheaper means to settle a dispute with your Title Insurance Company. However, if you agree to arbitrate, you give up your right to take the Title Company to court and your rights to discovery of evidence may be limited in the arbitration process. In addition, you cannot usually appeal an arbitrator's award. Your policy contains an arbitration provision (shown below). It allows you or the Company to require arbitration if the amount of insurance is $2,000,000 or less. If you want to retain your right to sue the Company in case of a dispute over a claim, you must request deletion of the arbitration provision before the policy is issued. You can do this by signing this form and returning it to the Company at or before the closing of your real estate transaction or by writing to the Company. The arbitration provision in the Policy is as follows: "Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ("Rules"). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured, unless the Insured is an individual person (as distinguished from an Entity). All arbitrable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction." SIGNATURE DATE FORM T-7; Commitment for Title Insurance Page 8 TITLE DATA GF:1911717113 The attached title insurance commitment contains information which has been obtained or derived from records and information owned by Title Data, Inc. or one of its subsidiaries (collectively "Title Data"). Title Data owns and maintains land title plants for Harris, Brazoria, Chambers, Fort Bend, Galveston, Jefferson, Liberty, Montgomery and Waller counties, Texas. Title Data created its title plants through the investment of extensive time, labor, skill and money. The information contained in the title plants is protected by federal copyright law and Texas common law on trade secrets and contract. Title Data has granted our company a license to use one or more of its title plants. Our company's right to access and use Title Data's title plants is governed by our contract with Title Data. Our contract with Title Data restricts who can receive and/or use a title insurance commitment which is based, in whole or in part, upon Title Data's records and information. Under the terms of our contract with Title Data, we are permitted to provide you with the attached title insurance commitment for limited use and distribution only. Specifically, you are sublicensed to deliver, exhibit, or furnish the attached title insurance commitment (or any copies thereof) ONLY to your bona fide employees and a third party who is playing a bona fide role in this proposed real estate transaction, including a lawyer, a lender, a surveyor, a real estate broker or agent, and the parties to this proposed transaction. For purposes of our agreement with Title Data, "deliver, exhibit, or furnish" includes, without limitation ,copying this title insurance commitment (whether such copying be by means of a photocopier, facsimile machine, another electronic scanning device, or any other method of reproduction) and providing such copy to any third party. Your furnishing of the attached title insurance commitment to anyone not specifically enumerated above is not permitted by our contract with Title Data and constitutes a breach of our sublicense to you. Your furnishing of the attached title insurance commitment to anyone not specifically enumerated above is also a violation of federal copyright law and Texas common law. Therefore, as an express condition of us providing you with the attached title insurance commitment, you specifically agree to limit its uses to those set forth herein, and to provide a copy of this letter to any party to whom you deliver, exhibit, or furnish the attached title insurance commitment (or any copies thereof). In the event you are unable or unwilling to comply with these conditions, immediately return the attached title insurance commitment to our company, without reviewing, copying, or otherwise utilizing in any way the information contained therein. A COPY OF THIS LETTER MUST ACCOMPANY THE ATTACHED TITLE INSURANCE COMMITMENT AT ALL TIMES. ALL DOWNSTREAM RECIPIENTS MUST PROVIDE A COPY OF THIS LETTER TO ANY OTHER AUTHORIZED USERS OF THE ATTACHED TITLE INSURANCE COMMITMENT. File No.: 1911717113 DISCLOSURE PROVIDED WITH OR WITHIN TITLE COMMITMENT As Escrow Agent for the Real Estate transaction, StarTex Title Company, LLC, ("Escrow Agent") has received and/or will receive the buyer's/borrower's funds and/or funds from the buyer's/borrower's lender for disbursement at closing of the transaction. The seller and the buyer (or the borrower in a refinancing transaction) may request that escrow funds be invested in an interest -bearing account subject to a reasonable administrative fee charged by Escrow Agent and any account terms and conditions negotiated with the financial institution offering the interest bearing account. Otherwise, Escrow Agent shall deposit the earnest money in a demand deposit account that is federally insured to the maximum extent permitted by law. Demand deposit accounts are non interest bearing pursuant to federal law, but offer immediately available funds for withdrawal after a check has cleared. Escrow Agent may receive other benefits from the financial institution where the funds are deposited. Based upon the deposit of escrow funds in demand deposit accounts and other relationships with the financial institution, Escrow Agent is eligible to participate in a program whereby it may (i) receive favorable loan terms and earn income from the investment of loan proceeds and (ii) receive other benefits offered by the financial institution. TAX SERVICE DISCLOSURE To: FFC Equity Holdings, LP or assigns From: StarTex Title Company, LLC Date: April 13, 2012 RE: 1911717113 Property: , College Station, Texas This is to give you notice StarTex Title, Company, LLC, has a business relationship with Professional Real Estate Tax Service, LLC. Stewart Title Company holds a 45% ownership interest in StarTex Title Company, LLC and Stewart Title Company holds a 100% ownership interest in Professional Real Estate Tax Service, LLC. Because of this relationship, this referral may provide StarTex Title Company, LLC a financial or other benefit. Set forth below is the estimated charge or range of charges by Professional Real Estate Tax Service, LLC. You are NOT required to use Professional Real Estate Tax Service, LLC as a condition for the settlement of your loan on, or the purchase or sale of, the subject property. There are frequently other settlement service providers available with similar services. You are free to shop around to determine that you are receiving the best services and best rate for these services. Provider and Settlement Service Charge or Range of Charges Professional Real Estate Tax Service Tax Certificate $69.28 ($64.00 + tax) Please notify the below referenced Escrow Officer within ten (10) days from the date of this notice if you do not want Professional Real Estate Tax Service, LLC utilized in connection with your transaction. Burr Buckalew, Escrow Officer TEXAS TITLE INSURANCE INFORMATION Title Insurance insures you against loss resulting from Certain risks to El seguro de titulo la asegura on relaciou a perddas your title. resuftantes de ciertos riesgos qua pueden afectar eltituto desu propiedad. The Commitment for Title Insurance is the title insurance company's promise to issue the title insurance policy. The Commitment is legal document. You should review it carefully to completely understand it before your closing date. El Compromise para Suguro de Tiulo es la proesa de la compania aseguradora de titulos de emitir la poliza de seguro de titulo. El Compromiso es un documento legal. Usted debe leerlo cuidadosaments y entenderlo completamente antes de la fecha para finalizar su transaction. Your Commitment for Title Insurance is a legal contract between you and us. The Commitment is not an opinion or report of your title. It Is a contract to issue you a policy subject to the Commitments terms and requirements. Before Issuing a Commitment for Title Insurance (the Commitment) or a Title Insurance Policy (the Policy), the Title Insurance Company (the Company) determines whether the title is insurable. This determination has already been made. Part of that determination involves the company's decision to insure the title except for certain risks that will not be covered by the Policy. Some of these risks are listed In Schedule B of the attached Commitment as Exceptions. Other risks are stated in the Policy as Exclusions. These risks will not be covered by the Policy. Another part of the determination involves whether the promise to insure is conditioned upon certain requirements being met. Schedule Cof the Commitment lists these requirements that must be satisfied or the Company will refuse to cover them. You may want to discuss any matters shown in Schedules B and C of the Commitment with an attorney. These matters will affect your title and your use of the land. When your Policy is issued, the coverage will be limited by the Policy's Exceptions, Exclusions and Conditions, defined below • EXCEPTIONS are title risks that a Policy generally covers but does not cover In a particular instance. Exceptions are shown on Schedule B or discussed in Schedule C of the Commitment. They can also be added If you do not comply with the Conditions section of the Commitment. When the Policy is issued, all Exceptions will be on Schedule B of the Policy. • EXCLUSIONS are title risks that a Policy generally does not cover. Exclusions are contained in the Policy but not shown or discussed in the Commitment. • CONDITIONS are additional provisions that qualify or limit your coverage. Conditions include your responsibilities and those of the Company. They are contained in the Policy but not shown or discussed in the Commitment. The Policy Conditions are not the same as the Commitment Conditions. You can also get a copy of the policy form approved by the State Board of Insurance by calling the Title Insurance Company at 800-446-7086 or by calling the title Insurance agent that Issued the Commitment. The State Board of Insurance may revise the policy form from time to time. You can also get a brochure that explains the policy from the Texas Department of Insurance by calling 1-800-252-3439. Before the Policy Is Issued, you may request changes in the policy. Some of the changes to consider are: • Request amendment of the "area and boundary" exception (Schedule B, paragraph 2). To get this amendment, you must furnish a survey. On the Owner Policy, you must pay an additional premium for the amendment. If the survey is acceptable to the Company, your Policy will insure you against loss because of discrepancies or conflicts in boundary lines, encroachments or protrusions, or overlapping of improvements. The Company may then decide not to insure against specific boundary or survey problems by making special exceptions In the Policy. • Allow the Company to add an exception to "rights of parties in possession." If you refuse this exception, the Company or the title Insurance agent may Inspect the property. The Company may except to and not insure you against the rights of specific persons, such as renters, adverse owners or easement holders who occupy the land. The Company may charge you for the inspection. If you want to make your own inspection, you must sign a Waiver of Inspection form and allow the Company to add this exception to your Policy. The entire premium for a Policy must be paid when the Policy Is Issued. You will not owe any additional premiums unless you want to Increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement. Texas Title Insurance Information FORM 1177-17 (1-1-93) IMPORTANT NOTICE FOR INFORMATION, OR TO MAKE A COMPLAINT CALL OUR TOLL -FREE TELEPHONE NUMBER 1-800-446-7086 ALSO YOU MAY CONTACT THE TEXAS DEPARTMENT OF INSURANCE AT 1-800-252-3439 to obtain information on: 1. filing a complaint against an insurance company or agent, 2. whether an insurance company or agent is licensed, 3. complaints received against an insurance companyor 4. policyholders right, and 5. a list of consumer publications and services available through the Department. YOU MAY ALSO WRITE TO THE TEXAS DEPARTMENT OF INSURANCE P.O. BOX 149104 AUSTIN, TEXAS 78714-9104 FAX NO. (512) 475-1771 ADVISO IMPORTANTE PARA INFORMACION, 0 PARA SOMETER UNA QUEJA LLAME AL NUMERO GRATIS TAMBIEN PUEDE COMUNICARSE CON EL DEPARTAMENTO DE SEGUROS DE TEXAS AL 1-800-252-3439 Para obtener informacion sobre: 1. como someter una queja an contra de una compania de seguros o agento de seguros, 2. si una compania de seguros o agente de agent segurostienelicencia, 3. quejas recibidas en contra de una compania de seguros o agente de seguros, 4. los derechos del asegurado, y 5. una lista de publicaciones y servicios para consumidores disponibles a traves del Departamento. TAMBIEN PUEDE ESCRIBIR AL DEPARTAMENTO DE SEGUROS DE TEXAS P.O. BOX 149104 AUSTIN, TEXAS 78714-9104 FAX NO. (512) 475-1771 STG Privacy Notice 2 (Rev 01/26/09) Independent Agencies and Unaffiliated Escrow Agents WHAT DO/DOESTHE STARTEX TITLE COMPANY, LLC DO WITH YOUR PERSONAL INFORMATION? Federal and applicable state law and regulations give consumers the right to limit some but not all sharing. Federal and applicable state law regulations also require us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand how we use your personal information. This privacy notice is distributed on behalf of StarTex Title Company, LLC and its affiliates Stewart Title Guaranty Company pursuant to Title V of the Gramm -Leach -Bliley Act jGLBAj. The types of personal information we collect and share depend on the product or service that you have sought through us. This information can include social security numbers and driver's license number. All financial companies, such as StarTex Title Company, LLC, need to share customers' personal information to run their everyday business —to process transactions and maintain customer accounts. In the section below, we list the reasons that we can share customers' personal information; the reasons that we choose to share; and whether you can limit this sharing. Yes No For our everyday business purposes— top recess your transactions and maintain your account. This may include running the business and managing customer accounts, such as processing transactions, mailing, and auditing services, and responding to court orders and legal investigations. For our marketing purposes— to offer our products and services to you, Yes No For joint marketing with other financial companies No We don't share For our affiliates' everyday business purposes— information about your transactions and experiences. Affiliates are companies related by common ownership or control. They can be financial and nonfinancial companies. _ Yes _ No __.. For our affiliates' everyday business purposes— information about your creditworthiness. — No -.. We don't share _.__..........._— -- - --- -- For our affiliates to market to you Yes No For nonaffiliates to market to you. Nonaffiliates are companies not related by common ownership or control. They can be financial and nonfinancial companies. No We don't share We may disclose your personal information to our affiliates or to nonaffiliates as permitted by law, If you request a transaction with a nonaffiliate, such as a BOUNDARY DELETION DISCLOSURE The Texas Title Insurance Information portion of the Commitment for Title Insurance advises you that your Policy will insure you against loss because of non -excepted discrepancies or conflicts in boundary lines, encroachments or protrusions, or overlapping of improvements if you pay an additional five percent (5%) premium of the Basic Rate for your Residential Owner Policy for the coverage, and we are provided with a satisfactory survey, pursuant to Procedural Rule P2. Your Residential Owner Policy of Title Insurance will contain this coverage and you will be charged the additional five percent (5%) premium unless on or before the date of closing you advise the company in writing that you rejectthis coverage. If you do not get this insurance, you will have to hire your own attorney and surveyor, if necessary, and you will not be protected under your Residential Owner Policy against any encroachments, such as buildings over easements, buildings over setback lines, buildings over property lines or location of fences. GFff 30675 Aggieland Title Company EXAMINER'S REPORT RECORD TITLE AT THE EFFECTIVE DATE HEREOF APPEARS TO BE VESTED IN BCS Rock Prairie, LP THE LAND REFFERRED TO IN THIS REPORT IS DESCRIBED AS FOLLOWS Being all that certain tract or parcel of land lying and being situated in the JAMES ERWIN SURVEY, A-119, Brazos County, Texas and being part of the 116.32 acre Tract 2 described in the deed form Lieven J. Van Riet, Trustee to BCS Rock Prairie, LP recorded in Volume 10914, page 117 of the Official Records of Brazos County (O.R.B.C.) and being more particularly described by metes and bounds as follows: BEGINNING at a found 1/2-inch iron rod marking the most westerly corner of the said 116.352 acre BCS Rock Prairie, LP tract, the north corner of Lot 8, Block 4, GREAT OAKS SUBDIVISION, PHASE ONE as recorded in Volume 4150, page 295 (O.R.B.C.) and being in the southeast line of QUAIL RUN ESTATES, PHASE I as recorded in Volume 351, page 565 of the Brazos County Deed Records (B.C.D.C.), said iron rod also being at or near the common line of the W.H. FRAZIER SURVEY, A-122 and the JAMES ERWIN SURVEY, A-119; THENCE: N 43' 50' 43" E along the common line of the said 116.352 acre BCS Rock Prairie, LP tract and QUAIL RUN ESTATES, PHASE 1, said line being approximately along the beforesaid common line of the W.H. FRAZIER SURVEY, A-122 and the JAMES ERWIN SURVEY, A-119 for a distance of 379.95 feet to a 1/2-inch iron rod set for cornet; THENCE: S 40' 50' 06" E through the interior of the said 116.352 acre BCS Rock Prairie, LP tract for a distance of 521.70 feet to a found 1/2-inch iron rod marking the north corner of Lot 2, Block 5 of said GREAT OAKS SUBDIVISION, PHASE ONE; THENCE: along the northerly lines of said GREAT OAKS SUBDIVISION, PHASE ONE for the following six (6) calls: 1) S 430 38' 40" W for a distance of 270.86 feet to a found 1/2-inch iron rod for corner; 2) 110.05 feet in a counter -clockwise direction along the arc of a curve having a central angle of 12' 44' 58", a radius of 535.00 feet, a tangent of 59.77 feet and a long chord bearing N 52' 43' 49" W at a distance of 118.00 feet to a found 1/2-inch iron rod for corner, 3) N 15' 37' 38" W for a distance of 50.00 feet to a found 1/2-inch iron rod for corner, 4) N 60° 48' 51" W for a distance of 70.00 feet to a found 1/2-inch iron rod for corner, 5) S 29' it, 09" W for a distance of 56.64 feet to a found 1/2-inch iron rod for corner, and 6) N 46' 09' 17" W for a distance of 305.92 feet to the POINT OF BEGINNING and containing 3.946 acres of land, more or less. 3740 Copperfield Drive, Suite 101 • Biyan, Texas 77802 Phone (979) 731-8400 ® FAX (979) 731-8408 GF# 30675 To Be Recorded RESTRICTIVE COVENANTS: SCHEDULE B EXCEPTIONS a. Easement granted to Ferguson Crossing Pipe Line Company by Lillian Jones Kurz as set out in instrument dated October 17, 1991, recorded in Volume 1370, page 217 of the Official Public Records of Brazos County, Texas. b. Mineral Reservation as set out in deed dated April 20, 1940 from Janie Boriski and husband, Mike Boriski to John Hanley and wife, Magdalen Hanley, recorded in Volume 103, page 530, Deed Records of Brazos County, Texas. Title to this interest not investigated subsequent to date of said instrument. C. Mineral Reservation as set out in deed dated January 22, 1990 from Lillian J. Kurz to Lillian J. Kurz, John Hanley and Joyce Sandlin as Trustees of the Lillian Jones Kurz Trust, dated June 1, 1989, recorded in Volume 1164, page 849, Official Public Records of Brazos County, Texas. Title to this interest not investigated subsequent to date of said instrument. d. Mineral Reservation as set out in deed dated July 17, 1992 from Lillian J. Kurz to Lillian J. Kurz, John Hanley and Joyce Sandlin as Trustees of the L. H. Kurz Trust No. 2, dated June 25, 1992, recorded in Volume 1562, page 14, Official Public Records of Brazos County, Texas. Title to this interest not investigated subsequent to date of said instrument. e. Mineral Reservation as set out in deed dated August 2, 1996 from Magdalen R. Hanley, Individually and as Independent Executrix of the Estate of John Hanley, Jr., Deceased and as Trustee of the John Hanley, Jr. Testamentary Trust to Lillian J. Kurz, recorded in Volume 2662, page 312, Official Public Records of Brazos County, Texas. Title to this interest not investigated subsequent to date of said instrument. Mineral Reservation as set out in deed dated April 14, 2000 from John Hanley, Co -Trustee of the L. J. Kurz Trust No. 2 to Bandura Corp., recorded in Volume 3783, page 194, Official Public Records of Brazos County, Texas. Title to this interest not investigated subsequent to date of said instrument. g. Mineral Reservation as set out in deed dated April 14, 2000 from Lillian J. Kurz, individually and as Co -Trustee, et al to Bandura Corp., recorded in Volume 3783, page 196, Official Public Records of Brazos County, Texas. Title to this interest not investigated subsequent to date of said instrument. AGGIELAND TITLE COMPANY Page 2 GF# 30675 h. Estate created by oil, gas and mineral lease granted to Getty Oil Company by Lillian Jones Kurz by instrument dated May 16, 1978 and recorded in Volume 32, page 677 of the Oil, Gas and Mineral Lease Records of Brazos County, Texas, and all terms, conditions and stipulations contained therein. Title to this lease has not been investigated subsequent to date thereof. i. Estate created by oil, gas and mineral lease granted to Getty Oil Company by John Hanley, Jr. and wife, Magdalen Hanley by instrument dated May 8, 1978 and recorded in Volume 33, page 117 of the Oil, Gas and Mineral Lease Records of Brazos County, Texas, and all terms, conditions and stipulations contained therein. Title to this lease has not been investigated subsequent to date thereof. j. Surface Waiver, first acknowledged December 13, 1999, executed by William Hanley, Thomas Hanley, Lilian J. Kurz, Individually and as Co -Trustee, Robert Thomas Collmer, Co -Trustee and John Hanley, hndividually and as Co -Trustee, recorded in Volume 3783, page 191 of the Official Public Records of Brazos County, Texas. k. Affidavit of Non -Production executed by Lieven J. Van Riet, Trustee, dated May 21, 2012, recorded in Volume 10684, page 251, Official Public Records of Brazos County, Texas. 1. Rights of parties in possession. AGGIELAND TITLE COMPANY Page 3 GF# 30675 CURATIVE MATTERS a. Deed of Trust dated October 25, 2012 from BCS Rock Prairie, LP, a Texas limited partnership to Tim Jones, Trustee, securing the payment of one note of even date therewith in the principal sum of $3,350,000.00, and any other amounts payable under the terms thereof, payable to First Victoria National Bank, filed for record with the County Clerk of Brazos County, Texas, on October 29, 2012, recorded in Volume 10983, page 1 of the Official Public Records of Brazos County, Texas. b. This report does not cover matters of survey, including, but not limited to discrepancies, conflicts or shortages in area or boundary lines or any encroachments or protrusions or any overlapping improvement. c. Standby fees, taxes and assessments have not been investigated This report is prepared and delivered with the express understanding and agreement, evidenced by the acceptance hereof, that the undersigned is not rendering an opinion as to the title to the land under investigation herein, and while believing its construction of the records as hereinabove set out to be true and correct, still will incur no liability beyond the fee paid for this report by reason of such construction, nor will it be liable for any error or omission of any kind whatsoever. This report is prepared for informational purposes only, exclusively for the party paying the fee. EXAMINEWS SIGNATURE Preparation Date: June 15, 2013 Effective Date: June 3, 2013 Effective Time: 07:00 am AGGIELAND TITLE COMPANY Page 4 CERTIFICATE OF RESOLUTION OF BCS ROCK PRAIRIE GP, L.L.C. September 1, 2012 I, the undersigned Secretary or Assistant Secretary of BCS ROCK PRAIRIE GP, L.L.C. (the "Company"), hereby certifies that the Company is organized and existing under and by virtue of the laws of the State of Texas as a limited liability company, with its principal office located in Houston, Harris County, Texas. I further certify that at a meeting of the Members of the Company, or by authorized action ofthe Managers without meeting, the Members duly adopted the following resolutions: RESOLVED, that FRED F. CALDWELL, President of the Company or CLINT COOPER, Vice -President of the Company, acting in its capacity as the General Partner of BCS ROCK PRAIRIE, L.P., a Texas limited partnership, (the "Partnership"), or any Officer of the Company acting in such capacity authorize, enter into, complete, execute, sign, or submit any and all permit applications, development agreements or applications, planning and zoning requests, utility agreements or applications, general plans, preliminary and final plats, or any other similar development related instrument, application or request on such terms and conditions as FRED F. CALDWELL or CLINT COOPER or said other Officer shall in his discretion determine to be appropriate. RESOLVED FURTHER, that the Company execute in the name of and on behalf of the Partnership, and deliver any instruments, applications, agreements or documents of any kind or nature whatsoever, and to take from time to time any other actions which such partner shall in its discretion determine to be necessary or appropriate to effect the transactions contemplated by any such document or instrument, whether upon the terms and conditions set forth in such documents and instruments or upon such other terms and conditions as such partner in its discretion shall determine to be appropriate, and the execution and delivery of any document or instrument by such partner shall constitute conclusive evidence that the terms and conditions contained in said documents or instruments have been determined to be appropriate by Fred F. Caldwell or Clint Cooper or such other Officer on behalf of the Partnership pursuant to this Consent. RESOLVED FURTHER, that any and all other actions heretofore taken by any Officer or Officers of the Company, in its capacity as General Partner of the Partnership, to execute and deliver any of the agreements authorized by the foregoing resolutions, or to take any of the actions authorized by the foregoing resolutions are hereby approved, ratified and confirmed in all respects. I, further certify that each Officer is duly elected or appointed by or for the Company and occupies the position with the Company stated above; that the foregoing Resolutions now stand of record on the books of the Company; and that the Resolutions are in full force and effect and have not been modified or revoked in any manner. 2012. IN TESTIMONY WHEREOF, I have hereunto set my hand, this the I day o& ' Cer ifieate ofRuolution