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HomeMy WebLinkAboutTitle Insurance t Lawyers P Tltie [ r1 iLer ' • INSURANCE CORORATION Policy No.: TX0353- 82- S32152- 2010.8239843 - 81011155 OWNER'S POLICY OF TITLE INSURANCE (T -1) Issued by LAWYERS TITLE INSURANCE CORPORATION • Any notice of claim and any other notice or statementin writing required to be given the Company tinder this Policy must be given to the Company at the address shown in Section 18 of the Conditions. COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS, LAWYERS TITLE INSURANCE CORPORATION, a Nebraska. corporation (the "Company") insures, as of Date of Policy and, to the extent stated in Covered Risks 9 and 10, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of: I. Title being vested other than as stated in Schedule A. 2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss front: (a) A defect in the Title caused by: ° (i) forgery, fraud, undue influence, duress, incompetency, incapacity or impersonation; (ii) failure of any person or Entity to have authorized a transfer or conveyance; (iii) a document affecting Title not properly created, executed, witnessed, sealed, acicnowledged, notarized or delivered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified, expired or otherwise invalid power of attorney; (vi) a document not properly filed, recorded or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (vii)a defective judicial or administrative proceeding. (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid. (c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term "encroachment" includes encroachments of existing improvements located on the Land onto adjoining land, and encroaclunents onto the Land of existing improvements located on adjoining land. (d) Any statutory or constitutional mechanic's, contractor's, or materialman's lien for labor or materials having its inception on or before Date of Policy. • 3. Lack of good and indefeasible Title. 4. No right of access to and from the Land. 5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting or relating to: (a) the occupancy, use or enjoyment of the Land; (b) the character, dimensions or location of any improvement erected on the Land; (c) subdivision of land; or (d) environmental protection if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent of the violation or enforcement referred to in that notice. 6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice. 7. The exercise of the .rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records. 8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge. 9. Title being vested other than as stated in Schedule A or being defective: (a) as a result of the avoidance in whole or in part, or from a court order providing an alternative remedy, of a transfer of all or any part of the title to or any. interest in the Land occurring prior to the transaction vesting Title as shown in Schedule A because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency or similar creditors' rights laws; or (b) because the instrument of transfer vesting Title as shown in Schedule A constitutes a preferential transfer under federal bankruptcy, 8239843 (2/10) Owner's Policy of Title insurance T -1 (2/01/10) 11 13-11 3 y l� 4 40 0' • state insolvency or similar creditors' rights laws by reason of the failure of its recording in the Public Records: (i) to be timely, or (ii) to impart notice of its existence to a purchaser for value or a judgment or lien creditor. 10. Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 9 that has been created or attached or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of any matter insured against by this Policy, but only to the extent provided in the Conditions. LAWYERS TITLE INSURANCE CORPORATION .. r . ny ((g1141 y ... / � p 4 1 }/ // l • 4. ! t. i i 51 S.EA 1,.. i . Authorized Signatory + ` ' •.. °.. NrIEST JoAnn Olexey f1 = ..•� ` � TX0353 S32152 Lawyers Title Company Of Brazos County 1450 Copperfield Pkway College Station , TX 77845 Tel:(979) 776 -3600 Fax:(979) 776 -3700 • • • 8239843 (2/10) Owner's Policy of Title Insurance T -1 (2/01/10) OWNER'''POLICY OF TITLE INSURANCE Issued by Lawyers Title Insurance Corporation SCHEDULE A Name and Address of Title Insurance Company: LAWYERS TITLE INSURANCE CORPORATION P. O. Box 45023, Jacksonville, Florida 32232 -5023 File No.: S32152 Policy No.: 8239843 - 81011155 Issued with Policy No. 8239943 - 81011202 Address for Reference only: 3330 Greens Prairie Road West, College Station, TX 77845 Amount of Insurance: $5,327,272.00 Premium: $24,394.00 Date of Policy: June 2, 2010, at 12:36 pm • 1. Name of Insured: Dos Dorado Development, LLC, a Texas limited liability company d /b /a 3 -D Development 2. The estate or interest in the Land that is insured by this policy is: Fee Simple 3. Title is insured as vested in: Dos Dorado Development, LLC, a Texas Limited liability company d /b /a 3 -D Development 4. The Land referred to in this policy is described as follows: ALL THAT CERTAIN TRACT OR PARCEL OF LAND LYING AND BEING SITUATED IN THE ROBERT STEVENSON LEAGUE, ABSTRACT NO. 54, COLLEGE STATION, BRAZOS COUNTY, TEXAS. SAID TRACT BEING THE REMAINDER OF A CALLED 303.97 ACRE TRACT AS DESCRIBED IN A PARTITION DEED TO DIEBEL FAMILY PARTNERS, LTD. RECORDED IN VOLUME 4027, PAGE 29 OF THE OFFICIAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS. SAID TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING AT A % INCH IRON ROD FOUND ON THE SOUTHWEST LINE OF A CALLED 75.07 ACRE TRACT AS DESCRIBED BY A DEED TO BCS DEVELOPMENT CO. RECORDED IN VOLUME 6985, PAGE 42 OF THE OFFICIAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS, MARKING THE NORTH CORNER OF SAID REMAINDER OF 303.97 ACRE TRACT AND THE EAST CORNER OF A CALLED 29.405 ACRE TRACT AS DESCRIBED BY A DEED TO THE AGNES C. BAKER REVOCABLE LIVING TRUST RECORDED IN VOLUME 2488, PAGE 64 OF THE OFFICIAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS; THENCE: S 48° 03' 31" E ALONG THE COMMON LINE OF SAID REMAINDER OF 303.97 ACRE TRACT AND SAID 75.07 ACRE TRACT, AT 642.02 FEET PASS A '/z INCH IRON ROD `FOUND MARKING THE WEST CORNER OF CASTLEGATE SUBDIVISION, SECTION 9, ACCORDING TO THE PLAT RECORDED IN VOLUME 4820, PAGE 94 OF THE OFFICIAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS, CONTINUE ON ALONG THE COMMON LINE OF SAID REMAINDER OF 303.97 ACRE TRACT AND CASTLEGATE SUBDIVISION, SECTION 9, CASTLEGATE SUBDIVISION, SECTION 7, PHASE 1, ACCORDING TO THE PLAT RECORDED IN VOLUME 7812, PAGE 265 OF THE OFFICIAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS, CASTLEGATE SUBDIVISION, SECTION 7, PHASE 2, ACCORDING TO THE PLAT RECORDED IN VOLUME 8369, PAGE 131 OF THE OFFICIAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS, AND CASTLEGATE SUBDIVISION, SECTION 6, ACCORDING TO THE PLAT RECORDED IN VOLUME 7213, PAGE 40 OF THE OFFICIAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS, AT 4152.50 FEET PASS A INCH IRON ROD FOUND ON THE NORTHEAST LINE OF SAID REMAINDER OF 303.97 ACRE TRACT, CONTINUE ON FOR A TOTAL DISTANCE OF 4166.54 FEET TO A POINT WITHIN THE PAVED RIGHT -OF -WAY OF GREENS PRAIRIE ROAD (VARIABLE WIDTH R.O.W.) MARKING THE EAST CORNER OF THIS HEREIN DESCRIBED TRACT; THENCE: S 41° 55' 52" W THROUGH THE APPARENT RIGHT -OF -WAY OF GREENS PRAIRIE ROAD AND ALONG THE SOUTHEAST LINE OF SAID REMAINDER OF 303.97 ACRE TRACT FOR A DISTANCE OF 2090.81 FEET TO THE SOUTH CORNER OF THIS HEREIN DESCRIBED TRACT; THENCE: N 48° 21' 09" W CONTINUING THROUGH THE APPARENT RIGHT -OF -WAY OF GREENS PRAIRIE ROAD, AT 39.39 FEET A ''A I NCH IRON ROD FOUND NEAR THE EAST CORNER OF • FORM T -1: Owner's Policy of Title Insurance Page 1 Continuation of Schedule A Policy No. 8239843 - 81011155 SWEETWATER FOREST, PHASE ONE, ACCORDING TO THE PLAT RECORDED IN VOLUME 4267, PAGE 254 OF THE OFFICIAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS, BEARS: N 28° 55' 32" E FOR A DISTANCE OF 0.13 FEET, CONTINUE ALONG THE COMMON LINE OF SAID REMAINDER OF 303.97 ACRE TRACT AND SWEETWATER FOREST, PHASE ONE, FOR A TOTAL DISTANCE OF 158.04 FEET TO A POINT; THENCE: ALONG THE COMMON LINE OF SAID REMAINDER OF 303.97 ACRE TRACT AND SWEETWATER FOREST, PHASE ONE, FOR THE FOLLOWING CALLS: N 56° 19' 49" E FOR A DISTANCE OF 85.94 FEET; N 24° 48' 53" W FOR A DISTANCE OF 49.81 FEET; N 67° 01' 46" W FOR A DISTANCE OF 65.96 FEET; S 50° 32' 25" W FOR A DISTANCE OF 60.05 FEET; N 52° 33' 01" W FOR A DISTANCE OF 90.43 FEET; N 31° 31' 00" E FOR DISTANCE OF 78.55 FEET; N 52° 41' 45" E FOR A DISTANCE OF 53.92 FEET; N 04° 33' 48" W FOR A DISTANCE OF 27.74 FEET; N 64° 22' 35" W FOR A DISTANCE OF 58.62 FEET; S 64° 50' 10" W FOR A DISTANCE OF 89.41 FEET; N 59° 39' 33" W FOR A DISTANCE OF 92.34 FEET; S 72° 09' 01" W FOR A DISTANCE OF 54.75 FEET; N 56° 06' 26" W FOR A DISTANCE OF 85.10 FEET; S 33° 33' 04" W FOR A DISTANCE OF 54.03 FEET; N 88° 06' 49" W FOR A DISTANCE OF 84.93 FEET; N 58° 52' 50" W FOR A DISTANCE OF 135.41 FEET; S 66° 38' 21" W FOR A DISTANCE OF 76.07 FEET; N 34° 47' 57" W FORA DISTANCE OF 50.12 FEET; N 23° 42' 35" E FOR A DISTANCE OF 24.18 FEET; N 81° 57' 29" W FOR A DISTANCE OF-125.57 FEET; S 10° 37' 48" E FOR A DISTANCE OF 41.67 FEET; S 80° 46' 49" W FOR A DISTANCE OF 36.76 FEET; N 41° 06' 28" W FOR A DISTANCE OF 41.21 FEET; N 00° 33' 10" E FOR A DISTANCE OF 33.24 FEET TO THE SOUTH CORNER OF THE REMAINDER OF A CALLED 101.322 ACRE TRACT AS DESCRIBED BY SAID PARTITION DEED TO ESTHER JANE GRANT McDOUGAL.(4027 /29); FORM T -1: Owner's Policy of Title Insurance Page 2 Continuation of Schedule A Policy No. 8239843 - 81011155 . THENCE: N 13° 02' 31" E ALONG THE COMMON LINE OF SAID REMAINDER OF 303.97 ACRE TRACT AND SAID REMAINDER OF 101.322 ACRE TRACT, AT 69.86 FEET PASS A % INCH IRON ROD FOUND, CONTINUE ON FOR A TOTAL DISTANCE OF 296.67 FEET TO A' /: INCH IRON ROD FOUND; THENCE: N 48° 03' 24" W CONTINUING ALONG THE COMMON LINE OF SAID REMAINDER OF 303.97 ACRE TRACT AND SAID REMAINDER OF 101.322 ACRE TRACT FOR A DISTANCE OF 2926.83 FEET TO A '/ INCH IRON ROD FOUND ON THE SOUTHEAST LINE OF A CALLED 18.80 ACRE TRACT DESCRIBED AS TRACT 7 BY A PARTITION DEED TO CHESTER BROWN RECORDED IN VOLUME 3413, PAGE 228 OF THE OFFICIAL'PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS; THENCE: N 41 56' 44" E ALONG THE COMMON LINE OF SAID REMAINDER OF 303.97 ACRE TRACT AND SAID 18.80 ACRE TRACT AND THE AFOREMENTIONED 29.405 ACRE TRACT (2488/64) FOR A DISTANCE OF 2106.35 FEET TO THE POINT OF BEGINNING. CONTAINING 202.655 ACRES OF LAND, MORE OF 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 are or quantity is correct, but is made only for informational and /or identification purposes and does not override Item 2 of Schedule B hereof. • FORM T -1: Owner's Policy of Title Insurance Page 3 OWNERS POLICY OF TITLE INSURANCE Issued by Lawyers Title Insurance Corporation SCHEDULE B File No.: S32152 Policy No.: 8239843- 81011155 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 leases and easements, if any, shown in Schedule A, and the following matters: 1. The f Bowing restrictive covenants of record itemized below (the Company must tither insert specific recording data or delete this 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 right of access to that area or easement along and across that area. 5. Standby fees, taxes and assessments by any taxing authority for the year 2010, and subsequent years; and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year. 6. The following matters and all terms of the documents creating or offering evidence of the matters (The Company must insert matters or delete this exception.): a. Vendor's lien retained in Deed executed by Diebel Family Partners, Ltd., a Texas limited partnership to Dos Dorado Development, LLC, a Texas limited liability company d /b /a 3 -D Development, dated June 1, 2010, recorded in Volume 9656, Page 213, corrected and re- recorded on July 20, 2010, in Volume 9735, Page 105, Official Records of Brazos County, Texas, securing the payment of one note of even date therewith in the principal sum of $5,327,272.00, payable to Diebel Family Partners, Ltd., a Texas limited partnership, and additionally secured by a Deed of Trust of even date therewith executed by Dos Dorado Development, LLC, a Texas limited liability company d/b /a 3 -D Development to J. Davis Watson, Trustee, said Deed of Trust filed on June 2, 2010, in Volume 9656, Page 220, Official Records of Brazos County, Texas. b. Survey dated February 19, 2010, revised February 22, 2010, April 6, 2010, and again on May 5, 2010 prepared by Brad Kerr, R.P.L.S. No. 4502 shows the following matters, the existence of which are not insured against loss by this policy: 1. A portion of the subject tract along the southeasterly property line protrudes into the Greens Prairie Road Right -of -Way. FORM T -1: Owner's Policy of Title Insurance Page 4 Continuation of Schedule B Policy No. 8239843 - 81011155 2. Cattle guard along the southeasterly tract line with gravel roadway. Roadway encroaches across telephone and pipeline easements. 3. Fencing and concrete pads near the easterly corner of the subject tract. 4. 75' platted Public road right -of -ways bisecting the subject tract in a southeasterly and also a southwesterly direction. c. Called 14.52 Acres "AO" Zoning area per City Ordinance No. 3012, as shown on survey dated February 19, 2010, revised February 22, 2010, April 6, 2010, and again on May 5, 2010 prepared by Brad Kerr, R.P.L.S. No. 4502 d. Rights or claims, if any, of adjoining property owners in and to that portion of the insured premises lying between the fence and the southeasterly tract line and between the fence and the northwesterly tract line, as shown on survey by Brad Kerr, R.P.L.S. No. 4502, dated February 19, 2010, revised February 22, 2010, April 6, 2010, and again on May 5, 2010. e. Easement executed by W.I. McCulloch to The City of Bryan, Texas, dated May 12, 1937, recorded in Volume 98, Page 179, Deed Records of Brazos County, Texas, as noted on survey by Brad Kerr, R.P.L.S. No. 4502, dated February 19, 2010, revised February 22, 2010, April 6, 2010, and again on May 5, 2010. (BLANKET) f. Easement executed by Mrs. Mit Dansby and Mit Dansby, her husband to Sinclair Refining Company, dated March 10, 1947, recorded in Volume 132, Page 29, Deed Records; Assignment executed by ARCO Pipe Line Company (successor to Sinclair), to CITGO Products Pipeline Company, dated September 30, 1994, recorded in Volume 2217, Page 231, Official Records; Assignment executed by CITGO Products Pipeline Company to Explorer Pipeline Company, October 31, 2007, and also subsequent document executed on June 23, 2009, recorded in Volume 8326, Page 91, and in Volume 9192, Page 101 respectively; amended in instrument dated April 2, 2010, recorded in Volume 9565, Page 135, all being of Brazos County, Texas, as shown and noted on survey by Brad Kerr, R.P.L.S. No. 4502, dated February 19, 2010, revised February 22, 2010, April 6, 2010, and again on May 5, 2010. g. Easement executed by Esther Dansby and Mit Dansby to Seminole Pipeline Company, dated December 14, 1981, recorded in Volume 505, Page 776, Deed Records of Brazos County, Texas, as shown on survey by Brad Kerr, R.P.L.S. No. 4502, dated February 19, 2010, revised February 22, 2010, April 6, 2010, and again on May 5, 2010. h. Easement executed by Esther M. Dansby Producer's Gas Company, dated September 24, 1981, recorded in Volume 534, Page 86, Deed Records;"Assignment instrument recorded in Volume 1076, Page 304, Official Records; Assignment instrument recorded in Volume 1135, Page 473; amended in instrument recorded in Volume 9592, Page 240, Official Records, all being of Brazos County, Texas, as shown and noted on survey by Brad Kerr, R.P.L.S. No. 4502, dated February 19, 2010, revised February 22, 2010 and again on April 6, 2010. i. Easement executed by Mrs. Esther M. Dansby to Producer's Gas Company, recorded January 14, 1983, in Volume 556, Page 345, Deed Records; amended in instrument recorded in Volume 9592, Page 240, all being of Brazos County, Texas, as noted on survey by Brad Kerr, R.P.L.S. No. 4502, dated February 19, 2010, revised February 22, 2010, April 6, 2010, and again on May 5, 2010. , j. Easement executed by Mrs. Esther McCulloch Dansby to the City of Bryan, Texas, dated March 16, 1983, recorded in Volume 566, Page 489, Deed Records of Brazos County, Texas, as noted on survey by Brad Kerr, R.P.L.S. No. 4502, dated February 19, 2010, revised February 22, 2010, April 6, 2010, and again on May 5, 2010. (BLANKET) k. Revised Easement and Right -of -Way executed by Esther Jane Grant McDougal and Pauline Bruce Grant to General Telephone Company of the Southwest, dated February 27, 1985, recorded in Volume 771, Page 12, Official Records of Brazos County, Texas, as shown on survey by Brad Kerr, R.P.L.S. No. 4502, dated February 19, 2010, revised February 22, 2010, April 6, 2010, and again on May 5, 2010. FORM T -1: Owner's Policy of Title Insurance Page 5 Continuation of Schedule B Policy No. 8239843 - 81011155 I. Easement executed by Esther Jane Grant McDougal and Pauline Bruce Grant to City of Bryan, dated January 11, 1993, recorded in Volume 1697, Page 170, Official Records of Brazos County, Texas, as shown on survey by Brad Kerr, R.P.L.S. No. 4502, dated February 19, 2010, revised February 22, 2010, April 6, 2010, and again on May 5, 2010. m. Easement executed by Esther Jane McDougal to Aquila Southwest Pipeline Corporation, dated July 8, 1994, recorded in Volume 2168, Page 28, Official Records of Brazos County, Texas, as shown on survey by Brad Kerr, R.P.L.S. No. 4502, dated February 19, 2010, revised February 22, 2010, April 6, 2010, and again on May 5, 2010. n. Easement executed by Pauline Bruce Diebel to Aquila Southwest Pipeline Corporation, dated July 11, 1994, recorded in Volume 2168, Page 34, Official Records of Brazos County, Texas, as shown on survey by Brad Kerr, R.P.L.S. No. 4502, dated February 19, 2010, revised February 22, 2010, April 6, 2010, and again on May 5, 2010. o. Easement and Right -of -Way executed by Esther Jane Grant McDougal and Fain McDougal, Jr. to Williams Communication, Inc., d /b /a Vyvx, Inc., dated March 21, 2000, recorded in Volume 3766, Page 234, Official Records of Brazos County, Texas, as shown on survey by Brad Kerr, R.P.L.S. No. 4502, dated February 19, 2010, revised February 22, 2010, April 6, 2010, and again on May 5, 2010. P. *Mineral and /or royalty interest, as described in instrument executed by Esther. Jane Grant McDougal and Pauline Grant Diebel, dated September 30, 1993, recorded in Volume 1934, Page 157, Official Records of Brazos County, Texas; including but not limited to the right to use the surface of the land. Company makes no representation as to the present ownership of this interest. q. *Mineral and /or royalty interest, as described in instrument executed by Esther Jane Grant McDougal and Diebel Family Partners, Ltd., dated April 17, 2000, recorded in Volume 4027, Page 29, Official Records of Brazos County, Texas, including but not limited to the right to use the surface of the land. Company makes no representation as to the present ownership of this interest. r. *Mineral and /or royalty interest, as described in instrument executed by Diebel Family Partners, Ltd. to Dos Dorado Development, LLC d/b /a 3 -D Development, dated June 1, 2010, recorded in Volume 9656, Page 213, Official Records of Brazos County, Texas, including but not limited to the right to use the surface of the land. Company makes no representation as to the present ownership of this interest. s. *Waiver of Surface Rights executed by Diebel Family Partners, Ltd. and Pauline Grant Diebel, acknowledged June 1, 2010, recorded in Volume 9656, Page 203, Official Records of Brazos County, Texas. t. *Waiver of Surface Rights executed by Diebel Family Partners, Ltd. and Esther Jane Grant McDougal, acknowledged June 1, 2010, recorded in Volume 9656, Page 208, Official Records of Brazos County, Texas. *Title to said interest has not been ini'estigated subsequent to the date of the aforementioned instrument. u. All leases, grants, exceptions or reservations of coal, lignite, oil, gas and other minerals, together with all rights, privileges, and immunities relating thereto, appearing in the Public Records whether listed in Schedule B or not. There may be leases, grants exceptions or reservations of mineral interest that are not listed. v. Rights of parties in possession. Countersigned Lawyers Title Company of Brazos County tl/ Authorized Countersignature FORM T -1: Owner's Policy of Title Insurance Page 6 • IMPORTANT NOTICE AVISO IMPORTANTE To obtain information or make a complaint you may Para obtener informacion o para someter una write to Lawyers Title Insurance Corporation at: queja usted tambien puede escribir a Lawyers Title Insurance Corporation: P.O. Box 45023 P.O. Box 45023 Jacksonville, FL 32232 -5023 Jacksonville, FL 32232 -5023 You may contact the Texas Department of Puede comunicarse con el Departamento de Insurance to obtain information on companies, Seguros de Texas para obtener informacion acerca coverages, rights or complaints at: de companias, coberturas, derechos o quejas al: 1- 800 - 252 -3439 1 -800- 252 -3439 • You may write to the Texas Department of Puede escribir al Departmento de Seguros de Insurance: Texas: P. 0. Box 149104 P. 0. Box 149104 Austin, TX 78714 -9104 Austin, TX 78714 -9104 Fax: (512) 475 -1771 Fax: (512) 475 -1771 Web: http: / /www.tdi.state.tx.us Web: http: / /www.tdi.state.tx.us E -mail: ConsumerProtection (a7tdi.state.tx.us E -mail: ConsumerProtection cr tdi.state.tx.us PREMIUM OR CLAIM DISPUTES: DISPUTAS SOBRE PRIMAS 0 RECLAMOS: Should you have a dispute concerning your Si tiene una disputa concerniente a su prima o a un premium or about a claim you should contact the reclamo, debe comunicarse con la compania company first. If the dispute is not resolved, you primero. Si no se resuelve la disputa, puede may contact the Texas Department of Insurance. entonces comunicarse con el departamento (TDI). ATTACH THIS NOTICE TO YOUR POLICY: UNA ESTE AVISO A SU POLIZA: This notice is for information only and does not Este aviso es solo pars proposito de informacion y become a part or condition of the attached no se convierte en parte o condicion del document. - documento adjunto. • i • 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 that arise by reason of: 1. (a) Any law, ordinance, permit, or govemmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting or relating to: (1) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions or location of any improvement erected on the Land: (iii) subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered • Risk 5. . (b) Any governmental police power. This Exclusion I (b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 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 (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the insured Claimant had paid value for the Title. 4. Any claim by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws that the transaction vesting the Title as shown in Schedule A is: (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5. Any lien on the Title for real estate taxes or assessments imposed by govennmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. 6. 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 Unmarketable Title. • CONDITIONS 1. DEFINITION OF TERMS. clerk of the United States District Court for the district where the Land The following terms when used in this policy mean: is located. (a) "Amount of Insurance ": the amount stated in Schedule A, as may be (j) "Title ": the estate or interest described in Schedule A. increased or decreased by endorsement to this policy, increased by (k) "Unmarketable Title ": Title affected by an alleged or apparent matter Section 8(h), or de- creased by Sections 10 and 11 of these Conditions. that would permit a prospective purchaser or lessee of the Title or lender (b) "Date of Policy ": The date designated as "Date of Policy" in Schedule A. on the Title to be released from the obligation to purchase, lease or lend if (c) "Entity ": A corporation, partnership, trust, limited liability company or other there is a contractual condition requiring the delivery of marketable title. similar legal entity. 2. CONTINUATION OF INSURANCE. (d) "Insured ": the Insured named in Schedule A.. The coverage of this policy shall continue in force as of Date of Policy in favor (1) The term "Insured" also includes: . of an Insured, but only so long as the Insured retains an estate or interest in the (A) successors to the Title of the Insured by operation of law as Land, or holds an obligation secured by a purchase money Mortgage given by a distinguished from purchase, including heirs, devisees, purchaser from the Insured, or only so long as the insured shall have liability survivors, personal representatives or next of kin; by reason of warranties in any transfer or conveyance of the Title. This policy (B) successors to an Insured by dissolution, merger, consolidation, shall not continue in force in favor of any purchaser from the insured of either (i) distribution or reorganization; an estate or interest in the Land, or (ii) an obligation secured by a purchase (C) successors to an Insured by its conversion to another kind of money Mortgage given to the Insured. Entity; 3. NOTICE OF CLAIM TO BE GIVEN BY i:NSURED CLAIMANT. (D) a grantee of an insured under a deed delivered without payment The insured shall notify the Company promptly in writing (i) in case of any of actual valuable consideration conveying the Title: litigation as set forth in Section 5(a) below, or (ii) in case Knowledge shall (1) If the stock, shares, memberships, or other equity interests come to an Insured hereunder of any claim of title or interest that is adverse of the grantee are wholly -owned by the named Insured, to the Title, as insured, and that might cause loss or damage for which the (2) If the grantee wholly owns the named Insured, Company may be liable by virtue of this policy. iC the Company is prejudiced (3) if the grantee is wholly-owned by an affiliated Entity of by the failure of the insured Claimant to provide prompt notice, the Company's the named Insured, provided the affiliated Entity and the liability to the Insured Claimant under the policy shall be reduced to the extent named Insured are both wholly -owned by the same of the prejudice. person or Entity, or When, after the Date of the Policy, the Insured notifies the Company. as (4) If the grantee is a trustee or beneficiary of a trust created required herein of a lien, encumbrance, adverse claim or other defect in Title by a written instrument established by the Insured named insured by this policy that is not excluded or excepted from the coverage of in Schedule A for estate planning purposes. this policy, the Company shall promptly investigate the charge to determine (ii) With regard to (A), (B), (C) and (D) reserving, however, all rights whether the lien, encumbrance, adverse claim or defect or other matter is and defenses as to any successor that the Company would have had valid and not barred by law or statute. The Company shall notify the Ensured in against any predecessor Insured. writing, within a reasonable time, of its determination as to the validity or (e) "Insured Claimant ": an insured claiming loss or damage. invalidity of the Insured's claim or charge under the policy. If the Company (f) "Knowledge" or "Known": actual knowledge, not constructive knowledge concludes that the lien, encumbrance, adverse claim or defect is not covered or notice that may be imputed to an Insured by reason of the Public by this policy, or was otherwise addressed in the closing of the transaction in Records or any other records that impart constructive notice of matters connection with which this policy was issued, the Company shall specifically affecting the Title. advise the Insured of the reasons for its determination. If the Company (g) "Land ": the and described in Schedule A, and affixed improvements that concludes that the lien, encumbrance, adverse claim or defect is valid, the by law constitute real property. The term "Land" does not include any Company shall take one of the following actions: (i) institute the necessary property beyond the lines of the area described in Schedule A, nor any proceedings to clear the lien, encumbrance, adverse claim or defect from the right, title, interest, estate or easement in abutting streets, roads, avenues, Title as insured; (ii) indemnify the Insured as provided in this policy; (iii) upon alleys, lanes, ways or waterways, but this does not modify or limit the payment of appropriate premium and charges therefor, issue to the Insured extent that a right of access to and from the Land is insured by this policy. Claimant or to a subsequent owner, mortgagee or holder of the estate or interest (h) "Mortgage ": mortgage, deed of trust, trust deed, or other security in the Land insured by this policy, a policy of title insurance without instrument, including one evidenced by electronic means authorized by exception for the lien, encumbrance, adverse claim or defect, said policy to be law. in an amount equal to the current value of the Land or, if a loan policy, the (1) "Public Records ": records established under state statutes at Date of amount of the loan; (iv) indemnify another title insurance company in Policy for the purpose of imparting constructive notice of matter connection with its issuance of a policy(ies) of title insurance without relating to real property to purchasers for value and without exception for the lien, encumbrance, adverse claim or defect; (v) secure a Knowledge. With respect to Covered Risk 5(d), "Public Records" shall release or other document discharging the lien, encumbrance, adverse claim also include environmental protection liens filed in the records of the or defect: or (vi) undertake a combination of (i) through (v) herein. 8239843 (2/10) Owner's Policy of Title insurance T -1 (2/01 /10) in case of a claim under this policy, the Company shall have the following 4. PROOF OF LOSS. additional options: In the event the Company is unable to determine the amount of loss or damage, (a) To Pay or Tender Payment of the Amount of Insurance. the Company may, at its option, require as a condition of payment that the To pay or lender payment of the Amount of insurance under this policy insured Claimant furnish a signed proof of loss. The proof of loss must describe together with any costs, attorneys' fees and expenses incurred by the the defect, lien, encumbrance or other matter insured against by this policy that Insured Claimant that were authorized by the Company up to the time of constitutes the basis of loss or damage and shall state, to the extent possible, the payment or tender of payment and that the Company is obligated to pay. _ basis of calculating the amount of the loss or damage. Upon the exercise by the Company of this option, all liability and obligations of 5. DEFENSE AND PROSECUTION OFACTIONS. the Company to the Insured under this policy, other than to make the payment (a) Upon written request by the Insured, and subject to the options contained required in this subsection, shall terminate. including any liability or in Sections 3 and 7 of these Conditions, the Company, at its own cost and obligation to defend, prosecute, or continue any litigation. without unreasonable delay, shall provide for the defense of an Insured in (b) To Pay or Otherwise Settle. With Parties Other than the Insured or With litigation in which any third party asserts a claim covered by this policy the Insured Claimant. adverse to the insured. This obligation is limited to only those stated (i) to pay or otherwise settle with other parties for or in the name of causes of action alleging matters insured against by this policy. The an Insured Claimant any claim insured against under this policy. In Company shall havethe right to select counsel of its choice (subject to addition, the Company will pay any costs. attorneys' fees and the right of the Insured to object for reasonable cause) to represent the expenses incurred by the Insured Claimant that were authorized by insured as to those stated causes of action. it shall not be liable for and the Company up to the time of payment and that the Company is will not pay the fees of any other counsel. The Company will not pay obligated to pay; or any fees, costs or expenses incurred by the Insured in the defense of (ii) to pay or otherwise settle with the Insured Claimant the loss or those causes of action that allege matters not insured against by this damage provided for under this policy, together with any costs, policy. attomeys' fees and expenses incurred by the Insured Claimant that (b) The Company shall have the right, in addition to the options contained were authorized by the Company up to the time of payment and that in Sections 3 and 7, at its own cost, to institute and prosecute any the Company is obligated to pay. action or proceeding or to do any other act that in its opinion may be Upon the exercise by the Company of either of the options provided for in necessary or desirable. to establish the Title, as insured. or to prevent subsections (b)(i) or (ii), the Company's obligations to the insured under this or reduce loss or damage to the Insured. The Company may take any policy for the claimed loss or damage, other than the payments required to he appropriate action under the terms of this policy, whether or not it shall made, shall terminate, including any liability or obligation to defend, prosecute be liable to the Insured. The exercise of these rights shall not be an or continue any litigation. admission of liability or waiver of any provision of this policy. If the 8. DETERMINATION AND EXTENT OFLIABILITY. Company exercises its rights under this subsection, it must do so This policy is a contract of indemnity against actual monetary loss or damage diligently. sustained or incurred by the insured Claimant who has suffered loss or (c) Whenever the Company brings an action or asserts a defense as required damage by reason of matters insuredagainst by this policy. or permitted by this policy, the Company may pursue the litigation to a (a) The extent of liability of the Company for loss or damage under this final determination by a court of competent jurisdiction and it expressly policy shall not exceed the lesser of: • reserves the right, in its sole discretion, to appeal from any adverse (i) theAmount of Insurance; or judgment or order, (ii) the difference between the value of the Title as insured and the value 6. DUTY OF INSURED CLAIMANT TO COOPERATE. of the Title subject to the risk.insured against by this policy. (a) In all cases where this policy pennits or requires the Company to prosecute (b) If the Company pursues its rights under Section 3 or 5 and is unsuccessful or provide for the defense of any action or proceeding and any appeals, in establishing the Title, as insured: the insured shall secure to the Company the right to so prosecute or (i) theAmount of insurance shall be increased by 10%; and provide defense in the action or proceeding, including the right to use, at (ii) the Insured Claimant shall have the right to have the loss or its option, the name of the Insured for this purpose. Whenever requested • damage determined either as of the date the claim was made by the by the Company, the Insured, at the Company's expense, shall give the Insured Claimant or as of the date it is settled and paid. Company all reasonable aid (i) in securing evidence, obtaining witnesses, (c) im addition to the extent of liability under (a) and (b), the Company will prosecuting or defending the action or proceeding, or effecting also pay those costs, attorneys' fees and expenses incurred in settlement, and (ii) in any other lawful act that in the opinion of the accordance with Sections 5 and 7 of these Conditions. Company may be necessary or desirable to establish the Title or any other 9. LIMITATION OF LIABILITY. matter as insured, if the Company is prejudiced by the failure of the (a) if the Company establishes the Title, or removes the alleged defect, lien insured to furnish the required cooperation, the Company's obligations or encumbrance, or cures the lack of a right of access to or from the Land. to the insured under the policy shall terminate, including any liability or all as insured, or takes action in accordance with Section 3 or 7, in a obligation to defend, prosecute, or continue any litigation, with regard to reasonably diligent manner by any method, including litigation and the the matter or matters requiring such cooperation. completion of any appeals, it shall have fully performed its obligations (b) The Company may reasonably require the Insured Claimant to submit to with respect to that matter and shall not be liable for any loss or damage examination under oath by any authorized representative of the caused to the Insured. Company and to produce for examination, inspection and copying, at such (b) in the event of any litigation, including litigation by the Company or with reasonable times and places as may he designated by the authorized the Company's consent, the Company shall have 110 liability for loss or representative of the Company, all records, in whatever medium damage until there has been a final determination by a court of competent maintained, including books, ledgers, checks, memoranda, jurisdiction, and disposition of all appeals, adverse to the Title, as correspondence, reports, mails, disks, tapes, and videos whether insured. bearing a date before or after Date of Policy, that reasonably pertain to (c) The Company shall not be liable for loss or damage to the Insured for the loss or damage. Further, if requested by any authorized representative liability voluntarily assumed by the insured in settling any claim or suit of the Company, the Insured Claimant shall grant its permission, in without the prior written consent of the Company. writing, for any authorized representative of the Company to examine, 10, REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF inspect and copy all of these records in the custody or control of a third LIABILITY. • party that reasonably pertain to the loss or damage. All information All payments under this policy, except payments made for costs. attorneys' designated as confidential by the insured Claimant provided to the fees and expenses, shall reduce the Amount of Insurance by the amount of the Company pursuant to this Section shall not he disclosed to others payment. unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the Insured Claimant to submit 11. LIABILITY NONCUI1'[ULAT[VE. for examination under oath, produce any reasonably requested The Amount of Insurance shall be reduced by any amount the Company pays information or grant permission to secure reasonably necessary under any policy insuring a Mortgage to which exception is taken in information from third parties as required in this subsection, unless Schedule B or to which the insured has agreed, assumed, or taken subject or • prohibited by law or governmental regulation, shall terminate any which is executed by an insured after Date of Policy and which is a charge or liability of the Company under this policy as to that claim. lien on the Title, and the amount so paid shall be deemed a payment to the 7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; Insured under this policy. TERMINATION 01? LIABILITY. 12. PAYMENT OF LOSS. When liability and the extent of loss or damage have been definitely fixed in 8239843 (2/10) Owner's Policy of Title Insurance T -1 (2/01/10) • accordance with these Conditions, the payment shall be made within 30 days. any action asserting such claim, shall be restricted to this policy. 13. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT. (c) Any amendment of or endorsement to this policy must be in writing and (a) Whenever the Company shall have settled and paid a claim under this policy, authenticated by an authorized person, or expressly incorporated by it shall be subrogated and entitled to the rights of the Insured Claimant in ScheduleA of this policy. the Title and all other rights and remedies in respect to the claim that the (d) Each endorsement to this policy issued at any time is made a part of Insured Claimant has against any person or property, to the extent of the this policy and is subject to all of its terms and provisions. Except as the amount of any loss, costs, attorneys' fees and expenses paid by the Company. endorsement expressly states, it does not (1) modify any of the terms and If requested by the Company, the insured Claimant shall execute provisions ofthe,policy, (ii)modify any prior endorsement, (iii) extend the documents to evidence the transfer to the Company of these rights and Date of Policy or (iv) increase the Amount of insurance. Each remedies. The Insured Claimant shall permit the Company to sue, Commitment, endorsement or other form, or provision in the Schedules compromise or settle in the name of the Insured Claimant and to use the to this policy that refers to a term defined in Section 1 of the Conditions name of the Insured Claimant in any transaction or litigation involving these shall be deemed to refer to the term regardless of whether the term is rights and remedies. If a payment on account of a claim does not fully cover capitalized in the Commitment, endorsement or other funs, or the loss of the Insured Claimant, the Company shall defer the exercise of Schedule. its right to recover until after the Insured Claimant shall have recovered its Each Commitment, endorsement or other form, or provision in the Schedules loss. (h) The Company's right of subrogation includes the rights of the Insured to that refers to the Conditions and Stipulations shall be deemed to refer to the indemnities, guaranties, other policies of insurance or bonds, Conditions of this policy. notwithstanding any terms or conditions contained in those instruments that 16. SEVERABiLiTY. address subrogation rights. In the event any provision of this policy, in whole or in part, is held invalid 14. ARBITRATION. or unenforceable under applicable law, the policy shall be deemed not to include • Either the Company or the Insured may demand that the claim or controversy that provision or such part held to be invalid and all other provisions shall remain shall he submitted to arbitration pursuant to the Title Insurance Arbitration in full force and effect. Rules of the American Land Title Association ( "Rules "). Except as provided in 17. CHOICE OF LAW FORUM. • the Rules, there shall be no ,joinder or consolidation with claims or (a) Choice of Law: The Insured acknowledges the Company has controversies of other persons. Arbitrable matters may include, but are not underwritten the risks covered by this policy and determined the premium limited to, any controversy or claim between the Company and the Insured charged therefor in reliance upon the law affecting interests in real arising out of or relating to this policy, any service in connection with its property and applicable to the interpretation, rights, remedies or issuance or the breach ofa policy provision, or to any other controversy or claim enforcement of policies of title insurance of time jurisdiction where the arising out of the transaction giving rise to this policy, All arbitrable matters Land is located. Therefore, the court or an arbitrator shall apply the la�v when the. Amount of Insurance is $2,000,000 or less shall be arbitrated at the of the jurisdiction where the Land is located to determine the validity of option of either the Company or the Insured, unless the Insured is an individual claims against the Title that are adverse to the Insured, and in interpreting person (as distinguished from an Entity). All arbitrable matters when the and enforcing the terms of this policy. in neither case shall the court or Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when arbitrator apply its conflicts of laws principles to determine the applicable agreed to by both the Company and the Insured. Arbitration pursuant to this law' policy and under the Rules shall be binding upon the parties. Judgment upon (b) Choice of Forum: Any litigation or other proceeding brought by the the award rendered by theArbitrator(s) may be entered in any court of competent, Insured against the Company trust be filed only in a state or federal court jurisdiction. ' within the United States of America or its territories having appropriate • • 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. jurisdiction. — (a) This policy together with all endorsements, if any, attached to it by the 18. NOTICES, WHERE SENT. Company is the entire policy and contract between the insured and the Any notice of claim and any other notice or statement in writing required to Company. In interpreting any provision of this policy, this policy shall be be given the Company under this Policy must be given to time Company at construed as a whole. National Claims Administration, P.O. Box 45023, Jacksonville, Florida 32232 - (b) Any claim of loss or damage that arises out of the status of the Title or by 5023. • • • 8239843 (2/10) Owner's Policy of Title Insurance T -1 (2/01/10) •