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HomeMy WebLinkAboutTitle Insurance • • • OWNER'S POLICY OF TITLE INSURANCE Issued by Lawyers Title Insurance Corporation ,# A A POLICY NUMBER Landmerkca Lawyers Title Insurance Corporation is a member of the t Lawyers Title LandAmerica family of title insurance underwriters. 0 `" 0 0 S 1 -} f 1 SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, Lawyers Title Insurance Corporation, a Virginia corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described In Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Any statutory or constitutional mechanic's, contractors, or materialman's lien for labor or material having its inception on or before Date of Policy; 4, Lack of a right of access to and from the land; 5. Lack of good and indefeasible title. The Company also will pay the costs, attorneys' fees and expenses incurred In defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. IN WITNESS WHEREOF, LAWYERS TITLE INSURANCE CORPORATION has caused its corporate name and seal to be hereunto affixed by its duly authorized officers, the Policy to become valid when countersigned by an authorized officer or agent of the Company. LAWYERS TITLE INSURANCE CORPORATION __ JNSURA4, f `irrr Attest: SW r Z } By: W. SEAL Secretary ti i r ` � ' 1925 ;+ s President EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1 . (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (11) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, Lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded In the public records at Date of Policy, but not excluding from coverage any taking that has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; (e) resulting in loss or damage that would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. The refusal of any person to purchase, lease or lend money on the estate or interest covered hereby in the land described in Schedule A because of unmarketability of the title. 5. Any claim which arises out of the transaction vesting In the person named in paragraph 3 of Schedule A the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or other state or federal creditors' rights laws that is based on either (l) the transaction creating the estate or interest Insured by this Policy being deemed a fraudulent conveyance or fraudulent transfer or a voidable distribution or voidable dividend, (ii) the subordination or recharacterization of the estate or interest insured by this Policy as a result of the application of the doctrine of equitable subordination or (iii) the transaction creating the estate or interest insured by this Policy being deemed a preferential transfer except where the preferential transfer results from the failure of the Company or its issuing agent to timely file for record the instrument of transfer to the insured after delivery or the failure of such recordation to impart notice to a purchaser for value or a Judgment or lien creditor. Texas Owner Policy T -1 (Rev. 04/04/02) Valid only if Schedules A and B are attached Cover Page Form 1178 -21A ORIGINAL OWNER POLICY OF TITLE INSURANCE SCHEDULE A G.F. No. 1037000276A Policy No. B060089794 Amount of Insurance: $367,500.00 Premium: $2,700.20 Date of Policy: March 20, 2006 1. Name of Insured: BKXL Partners No. 2, Ltd. 2. The estate or interest in the land that is covered by this policy is: Tract One: Fee Simple Tract Two: Easement 3. Title to the estate or interest in the land is insured as vested in: BKXL Partners No. 2, Ltd. 4. The land referred to in this policy is described as follows: Tract 1: DESCRIPTION OF A TRACT OR PARCEL OF LAND CONTAINING 0.3642 ACRE OR 15,866 SQUARE FEET SITUATED IN THE J. E. SCOTT SURVEY, ABSTRACT NO. 50, IN COLLEGE STATION, BRAZOS COUNTY, TEXAS BEING THAT SAME PROPERTY DESCRIBED IN THAT GENERAL WARRANTY DEED AND AGREEMENT TO GOLDWIT PROPERTIES, LTD. DESCRIBED IN VOLUME 4026, PAGE 200 OF THE BRAZOS COUNTY DEED RECORDS AND ALSO CONSISTING ALL OF LOT 11, BLOCK 3, OF THE REDMOND TERRACE SUBDIVISION 1ST INSTALLMENT, ACCORDING TO THE PLAT RECORDED IN VOLUME 188, PAGE 295 OF THE BRAZOS COUNTY DEED RECORDS AND A 10 FOOT SIDE STRIP ADJOINING THE NORTHWEST LINE OF SAID LOT 11. SAID 0.3642 ACRE OR 15,866 SQUARE FOOT TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS WITH BEARINGS REFERENCED TO THE TEXAS STATE PLANE COORDINATE SYSTEM, CENTRAL ZONE: BEGINNING AT A POINT IN THE NORTHWESTERLY RIGHT OF WAY LINE OF REDMOND DRIVE (60 FEET IN WIDTH) MARKING THE MOST SOUTHERLY CORNER OF THE HEREIN DESCRIBED TRACT, SAME BEING THE MOST SOUTHERLY CORNER OF SAID LOT 11 AND THE MOST EASTERLY CORNER OF LOT 10 IN SAID BLOCK 3 OF THE REDMOND TERRACE SUBDIVISION 1ST INSTALLMENT FROM WHICH A 1/2 -INCH IRON ROD FOUND BEARS FOR REFERENCE SOUTH 35 DEGREES 23 MINUTES WEST, A DISTANCE OF 0.6 FEET; THENCE NORTH 50 DEGREES 15 MINUTES 41 SECONDS WEST, ALONG AND WITH THE COMMON LINE OF SAID LOTS 10 AND 11, AT 150.00 FEET PASSING A 1/2 -INCH IRON ROD FOUND MARKING THE MOST WESTERLY CORNER OF SAID LOT 11, THE MOST NORTHERLY CORNER OF SAID LOT 10 AND A CORNER OF THAT CERTAIN CALLED 3.956 ACRE TRACT OF LAND DESCRIBED IN VOLUME 1375, PAGE 284 OF THE BRAZOS COUNTY DEED RECORDS, CONTINUING IN ALL FOR A TOTAL DISTANCE OF 160.00 FEET TO A 112 -INCH IRON ROD FOUND MARKING THE MOST WESTERLY CORNER OF THE HEREIN DESCRIBED TRACT, SAME BEING AN INTERIOR CORNER OF SAID 3.956 ACRE Lawyers Title Insurance Corporation Form T -1 OTP (GF #: 1037000276A) Page 1 Policy No. B060089794 • G.F. No 1037000276A TRACT; THENCE NORTH 39 DEGREES 44 MINUTES 19 SECONDS EAST, ALONG AND WITH THE SOUTHEASTERLY LINE OF SAID 3.956 ACRE TRACT, A DISTANCE OF 100.00 FEET TO A 1/2-INCH IRON ROD FOUND IN THE SOUTHWESTERLY RIGHT OF WAY LINE OF TEXAS AVENUE, ALSO KNOWN AS STATE HIGHWAY 6 (WIDTH VARIES) MARKING THE MOST NORTHERLY CORNER OF THE HEREIN DESCRIBED TRACT; THENCE SOUTH 50 DEGREES 15 MINUTES 41 SECONDS EAST, ALONG AND WITH SAID SOUTHWESTERLY RIGHT OF WAY LINE, A DISTANCE OF 135.00 FEET TO A CONCRETE TEXAS DEPARTMENT OF TRANSPORTATION MONUMENT AT THE BEGINNING OF A TRANSITION CURVE TO THE RIGHT FROM SAID TEXAS AVENUE AND REDMOND DRIVE; THENCE IN A SOUTHERLY DIRECTION, ALONG AND WITH SAID TRANSITION CURVE HAVING A RADIUS OF 25.00 FEET, A CENTRAL ANGLE OF 90 DEGREES 00 MINUTES 00 SECONDS, A CHORD BEARING A DISTANCE OF SOUTH 05 DEGREES 15 MINUTES 41 SECONDS EAST, 35.36 FEET AND HAVING AN ARC DISTANCE OF 39.27 FEET TO A POINT OF TANGENCY AND THE END OF SAID TRANSITION CURVE FROM WHICH A 112 -INCH IRON ROD FOUND BEARS FOR REFERENCE SOUTH 04 DEGREES 53 MINUTES EAST, A DISTANCE OF 0.5 FEET; THENCE SOUTH 39 DEGREES 44 MINUTES 19 SECONDS WEST, ALONG AND WITH SAID NORTHWESTERLY RIGHT OF WAY LINE OF REDMOND DRIVE, A DISTANCE OF 75.00 FEET TO THE PLACE OF BEGINNING AND CONTAINING 0.3642 ACRE OR 15,866 SQUARE FEET OF LAND. Tract 2: Access Easement Agreement (this "Agreement ") dated December 8, 2005, recorded March 8, 2005, in/under County Clerk's File No. 00920144 of the Official Public Records of Brazos County, Texas, by and between Bright Light Corporation, a Texas Corporation and B -D Texas Venture, Ltd., a Texas limited partnership, being described as follows: A tract or parcel containing 0.0460 acre or 2,002 square feet of land, called to be the J.E. Scott League, No. 50, Brazos County, Texas, being in a called 3.958 acre tract to Bright Light Corporation in Volume 1375, Page 264, of Brazos County Deed Records with said 0.0460 acre tract being more particularly described as follows: BEGINNING at a 112 inch iron rod found on the southwesterly right of way line of Texas Avenue (A.K.A. State Highway 6), marking the most easterly corner of a called 3.958 acre tract also being most northerly corner of a called 0.364 acre tract to Goldwit Properties, Ltd., in Volume 4028, Page 200, B.C.D.R.; THENCE North 39 deg. 44 min. 19 sec. East, along the common line of said 3.956 and 0.364 acre tracts, a distance of 53.00 feet to a point for a corner; THENCE In a Northwesterly direction, along a curve to the right, having a radius of 53.00 feet, a central angle of 85 deg. 50 min. 12 sec., a chord bearing and distance of North 03 deg. 00 min. 59 sec. West 72.18 feet to a point for corner, on the said Southwesterly right of way line of Texas Ave; THENCE South 50 deg. 15 min. 41 sec. East, along said right of way line, a distance of 49.00 feet to the PLACE OF BEGINNING and containing 0.0460 acre or 2,002 square feet of land. NOTE: The Company is prohibited from insuring the area or quantity of the land described herein. Any statement in the legal description contained in Schedule "A" Lawyers Title Insurance Corporation T -1 OwnerTitlePolicy Page 2 Rev. 11/02 • • • G.F. No. 1037000276A as to area or quantity of land is not a representation that such area or quantity is correct, but is made only for informal identification purposes and does not override Item 2 of Schedule "B" hereof. Lawyers Title Insurance Corporation T -1 OwnerTitlePolicy Page 3 Rev. 11/02 • • SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of the terms and conditions of the leases or easements insured, if any, shown in Schedule A and the following matters: 1. The following restrictive covenants of record itemized below (We must either insert specific recording data or delete this exception): Restrictive Covenants recorded in /under Volume 188, Page 295, Volume 188, Page 297 and Volume 190, Page 74 of the Deed Records of BRAZOS County, Texas, but omitting any covenant or restriction based on race, color, religion, sex, handicap, familial status, or national origin. 2. Shortages in area. 3. Homestead or community property or survivorship rights, if any, of arty spouse of any insured. 4. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities, a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or b. to lands beyond the line of harbor or bulkhead lines as established or changed by any government, or c. to filled -in lands, or artificial islands, or d. to statutory water rights, including riparian rights, or e. to the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that area or easement along and across that area. 5. Standby fees, taxes and assessments by any taxing authority for the year 2006, 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 (We must insert matters or delete this exception.): a. Rights of parties in possession. b. 30' building line across front of property adjacent to Redmond Drive; 20' building line along side of property adjacent to State Highway No. 6; 20' utility easement centered along side of property adjacent to Lot 10; 20' utility easement centered across rear of property, and any and all easements as reserved on plat recorded in Volume 188, Page 295, Deed Records of Brazos County, Texas. c. 30' building line across front of property; 20' building line along side of property adjacent to State Highway No. 6; 10' building line along side of property adjacent to Lawyers Title Insurance Corporation Form T -1 OTP (GF #: 1037000276A) Page 4 Policy No. 8060089794 • • Lot 10; 25' building line across rear of property; 20' utility easement centered along side of property adjacent to Lot 10; 20' utility easement centered across rear of property, and any and all easements as set out in restrictions recorded in Volume 188, Page 297, and Volume 190, Page 74, both of the Deed Records of Brazos County, Texas. d. Access Easement Agreement as set out in instrument dated December 8 2005, recorded March 20., 2006 in /under County Clerk's File No. 00920144 of the Real Property Records of BRAZOS County, Texas. Lawyers Title Insurance Corporation By A uthori d Countersignature Lawyers Title Insurance Corporation Form T -1 OTP (GF #: 1037000276A) Page 5 Policy No. B060089794 r • 4DITIONS AND STIPULATIONS - CONTINL 7. DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE. 13. SUBROGATION UPON PAYMENT OR SETTLEMENT. This policy is a contract of indemnity against actual monetary loss or (a) The Company's Right of Subrogation. damage sustained or incurred by the insured claimant who has suffered loss or Whenever the Company shall have settled and paid a claim under this damage by reason of matters insured against by this policy and only to the policy, all right of subrogation shall vest in the Company unaffected by any act extent herein described. of the insured claimant. (a) The liability of the Company under this policy shall not exceed the The Company shall be subrogated to and be entitled to all rights and least of: remedies that the insured claimant would have had against any person or (i) the Amount of Insurance stated in Schedule A; property in respect to the claim had this policy not been issued. If requested (ii) the difference between the value of the insured estate or interest by the Company, the insured claimant shall transfer to the Company all rights as insured and the value of the insured estate or interest subject to the defect. and remedies against any person or property necessary in order to perfect this lien or encumbrance insured against by this policy at the date the insured right of subrogation. The insured claimant shall permit the Company to sue, Claimant is required to furnish to Company a proof of loss or damage in compromise or settle in the name of the insured claimant and to use the name accordance with Section 5 of these Condition;, and Stipulations. of the insured claimant in any transaction or litigation involving these rights or (b) In the event the Amount of Insurance stated in Schedule A at the Date remedies. of Policy is less than 80 percent of the value of the insured estate or interest or If a payment on account of a claim does not fully cover the loss of the the full consideration paid for the land, whichever is less, or if subsequent to insured claimant, the Company shall be subrogated to these rights and the Date of Policy an improvement is erected on the and which increases the remedies in the proportion that the Company's payment bears to the whole value of the insured estate or interest by at least 20 percent over the Amount of amount of the loss. insurance stated in Schedule A, then this Policy is subject to the following: If loss should result from any art of the insured claimant, as stated above, (i) where no subsequent improvement has been rnade, as to any that act shall not void this policy, but the Company, in that event, shall be partial loss, the Company shall only pay the loss pro rata in the proportion that required to pay only that part of any losses insured against by this policy that the amount of insurance at Date of Policy bears to the total value of the insured shall exceed the amount, if any, lost to the Company by reason of the estate or interest at Date of Policy; or impairment by the insured claimant of the Company's right of subrogation. (ii) where a subsequent improvement has been made, as to any (b) The Company's Rights Against Non- insured Obligors. partial loss, the Company shall only pay the loss pro rata in the proportion that The Company's right of subrogation against non - insured obligors shall 120 percent of the Amount of Insurance stated in Schedule A bears to the sum exist and shall include, without limitation, the rights of the insured to of the Amount of Insurance stated in Schedule A and the amount expended for indemnities, guaranties, other policies of insurance or bonds, notwithstanding the improvement. any terms or conditions contained in those instruments that provide for The provisions of this paragraph shall not apply to costs, attorneys' fees subrogation rights by reason of this policy. and expenses for which the Company is liable under this policy, and shall only apply to That portion of any loss which exceeds, in the aggregate, 10 percent 14. ARBITRATION. of the Amount of Insurance stated in Schedule A. Unless prohibited by applicable law or unless this arbitration section is (c) The Company will pay only those costs, attorneys' fees and expenses deleted by specific provision in Schedule B of this policy, either the Company incurred in accordance with Section 4 of these Conditions and Stipulations. of the Insured may demand arbitration pursuant to the Title Insurance Arbitration Rules or the American Arbitration Association. Arbitrable matters 8. APPORTIONMENT. may include, but are not limited to, any controversy or claim between the If the and described in Schedule A consists of two or more parcels that Company and the Insured arising out of or relating to this Policy, and service of are not used as a single site, and a loss is established affecting one or more of the Company in connection with its issuance or the breach of a policy provision the parcels but not all, the loss shall be computed and settled on a pro rata or other obligation. All arbitrable matters when the Amount of Insurance is basis as if the amount of insurance under this policy was divided pro rata as to $1,000,000 or less SHALL BE arbitrated at the request of either the Company the value on Date of Policy of each separate parcel to the whole, exclusive of or the Insured, unless the insured is an individual person (as distinguished any improvements made subsequent to Date of Policy, unless a liability or from a corporation, trust, partnership, association or other legal entity). All value has otherwise been agreed upon as to each parcel by the Company and arbitrable matters when the Amount of Insurance is in excess of $1,000,000 the insured at the time of the issuance of this policy and shown by an express shall be arbitrated only when agreed to by both the Company and the Insured. statement or by endorsement attached to this policy. Arbitration pursuant to this Policy and under the Rules in effect on the date the y < nn P y demand for arbitration is made or, at the option of the Insured, the Rules in effect at the Date of Policy shall be binding upon the parties. The award may 9. LIMITATION OF LIABILITY. include attorneys' fees only if the laws of the state in which the land is located (a) If the Company establishes the title, or removes the alleged defect, permit a court to award attorneys' fees to a prevailing party. Judgment upon lien or encumbrance, or cures the lack of a right of access to or from the land, the award rendered by the Arbitrator(s) may be entered in any court having all as insured, or takes action in accordance with Section 3 or Section 6, in a jurisdiction thereof. reasonably diligent manner by any method, including litigation and the The Law of the situs of the land shall apply to any arbitration under the completion of any appeals therefrom, it shall have fully performed its Title Insurance Arbitration Rules. obligations with respect to that matter and shall not be liable for any loss or A Copy of the Rules may be obtained from the Company upon request. damage caused thereby. (b) In the event of any litigation, including litigation by the Company or 15. LIABILITY LIMITED TO THIS POLICY: POLICY ENTIRE CONTRACT. with the Company's consent, the Company shall have no liability for loss or (a) This policy together with all endorsements, if any, attached hereto by damage until there has been a final determination by a court of competent the Company is the entire policy and contract between the insured and the jurisdiction, and disposition of all appeals therefrom, adverse to the title as Company. In interpreting any provision of this policy, this policy shall be insured, construed as a whole. (c) The Company shall not be liable for loss or damage to any insured for (b) Any claim of loss or damage, whether or not based on negligence, liability voluntarily assumed by the insured in settling any claim or suit without and which arises out of the status of the title to the estate or interest covered the prior written consent of the Company. hereby or by any action asserting such claim, shall be restricted to this policy. REDUCTION OF INSURANCE: REDUCTION OR TERMINATION OF (c) No amendment of or endorsement to this policy can be made except 10. 10. DU. by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or All payments under this policy, except payments made for costs, attorneys' validating officer or authorized signatory of the Company. fees and expenses, shall reduce the amount of the insurance pro tanto. 16. SEVERABILITY. 11. LIABILITY NONCUMULATIVE. In the event any provision of the policy is held invalid or unenforceable It is expressly understood that the amount of insurance under this policy under applicable law, the policy shall be deemed not to include that provision shall be reduced by any amount the Company may pay under any policy and all other provisions shall remain in full force and effect. insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter executed 17. NOTICES WHERE SENT. by an insured and which is a charge or lien on the estate or interest described All notices required to be given the Company and any statement in writing or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. required to be furnished the Company shall include the number of this policy and shall be addressed to: Consumer Affairs Department, P.O. Box 27567, 12. PAYMENT OF LOSS. Richmond, Virginia 2.3261 -7567 (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed, in COMPLAINT NOTICE. which case proof of loss or destruction shall be fumished to the satisfaction of Should any dispute arise about your premium or about a claim that you the Company. have filed, contact the agent or write to the Company that issued the (b) When liability and the extent of loss or damage has been definitely policy. If the problem is not resolved, you also may write the Texas fixed in accordance with these Conditions and Stipulations, the loss or damage Department of Insurance, P.O. Box 149091, Austin, TX 78714 -9091, Fax shall be payable within 30 days thereafter. No. (512) 475 -1771. This notice of complaint procedure is for information only and does not become a part or condition of this policy. k • • iE OWNER'S POLICY OF TITLE INSURANCE j El Issued by Lawyers Title Insurance Corporation POLICY NUMBER LandAmerica Lawyers Title Insurance Corporation is a member of the B013-0089193 Lawyers Title LandAmerica family of title insurance underwriters SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, Lawyers Title Insurance Corporation, a Virginia corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the Insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or hen or encumbrance on the title; 3. Any statutory or constitutional mechanic's, contractor's, or materiaiman's lien for labor or material having its inception on or before Date of Policy: 4. Lack of a right of access to and from the land; 5. Lack of good and indefeasible title. The Company also will pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. IN WITNESS WHEREOF, LAWYERS TITLE INSURANCE CORPORATION has caused its corporate name and seal to be hereunto affixed by its duly authorized officers, the Policy to become valid when countersigned by an authorized officer or agent of the Company. LAWYERS TITLE INSURANCE CORPORATION S tom,.• O� i Attest: ;W r —.— :12$ By: a 1e fN 4 1425 } . Secretary ti * President r1%%M0MOMD 41.– EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1 . (a) Any law, ordinance or governmental regulation (including but not limited to budding and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (i) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the and is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except 0 the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking that has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no toss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; (e) resulting in loss or damage that would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. The refusal of any person to purchase, tease or lend money on the estate or interest covered hereby in the land described in Schedule A because of unmarketability of the title. 5. Any claim which arises out of the transaction vesting in the person named in paragraph 3 of Schedule A the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or other state or federal creditors' rights laws that is based on either (1) the transaction creating the estate or interest Insured by this Policy being deemed a fraudulent conveyance or fraudulent transfer or a voidable distribution or voidable dividend, (5) the subordination or recharacterization of the estate or interest Insured by this Policy as a result of the application of the doctrine of equitable subordination or 05) the transaction creating the estate or interest insured by this Policy being deemed a preferential transfer except where the preferential transfer results from the - failure of the Company or its issuing agent to timely file for record the instrument of transfer to the Insured after delivery or the failure of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. Texas Owner Policy T -1 (Rev. 04!04102) Valid only if Schedules A and B are attached Cover Page Form 1178 -21A ORIGINAL • • OWNER POLICY OF TITLE INSURANCE SCHEDULE A G.F. No. 1037000242 Policy No. B06- 0089793 Amount of Insurance: $317,500.00 Premium: $2,382.80 Date of Policy: March 20, 2006 1. Name of Insured: BKXL Partners No. 2, Ltd. 2. The estate or interest in the land that is covered by this policy is: Fee Simple 3. Title to the estate or interest in the land is insured as vested in: BKXL Partners No. 2, Ltd. 4. The land referred to in this policy is described as follows: DESCRIPTION OF A TRACT OR PARCEL OF LAND CONTAINING 0.5898 ACRE OR 25,693 SQUARE FEET SITUATED IN THE J. E. SCOTT SURVEY, ABSTRACT NO. 50, IN COLLEGE STATION, BRAZOS COUNTY, TEXAS BEING THAT SAME PROPERTY DESCRIBED IN THAT GENERAL WARRANTY DEED TO GOLDWIT PROPERTIES, LTD. DESCRIBED IN VOLUME 4257, PAGE 332 OF THE BRAZOS COUNTY DEED RECORDS CONSISTING OF LOT 9 AND LOT 10, BLOCK 3, OF THE REDMOND TERRACE SUBDIVISION 1ST INSTALLMENT, ACCORDING TO THE PLAT RECORDED IN VOLUME 188, PAGE 295 OF THE BRAZOS COUNTY DEED RECORDS. SAID 0.5898 ACRE OR 25,693 SQUARE FOOT TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS WITH BEARINGS REFERENCED TO THE TEXAS STATE PLANE COORDINATE SYSTEM, CENTRAL ZONE; BEGINNING AT A POINT IN THE NORTHWESTERLY RIGHT OF WAY LINE OF REDMOND DRIVE (60 FEET IN WIDTH) MARKING THE MOST EASTERLY CORNER OF THE HEREIN DESCRIBED TRACT, SAME BEING THE MOST EASTERLY CORNER OF SAID LOT 10 AND THE MOST SOUTHERLY CORNER OF THAT CERTAIN CALLED 0.364 ACRE TRACT OF LAND DESCRIBED IN THAT GENERAL WARRANTY DEED AND AGREEMENT TO GOLDWIT PROPERTIES, LTD. DESCRIBED IN VOLUME 4026, PAGE 200 OF THE BRAZOS COUNTY DEED RECORDS FROM WHICH A 112 -INCH IRON ROD FOUND BEARS FOR REFERENCE SOUTH 35 DEGREES 23 MINUTES WEST, A DISTANCE OF 0.6 FEET; THENCE SOUTH 39 DEGREES 44 MINUTES 19 SECONDS WEST, ALONG AND WITH SAID NORTHWESTERLY RIGHT OF WAY LINE, A DISTANCE OF 68.30 FEET TO AN "X" CUT IN CONCRETE FOUND MARKING A POINT OF CURVATURE; THENCE IN A SOUTHWESTERLY DIRECTION, CONTINUING ALONG AND WITH SAID NORTHWESTERLY RIGHT OF WAY, BEING ON A CURVE TO THE RIGHT HAVING A RADIUS OF 200.00 FEET, SUBTENDING A CENTRAL ANGLE OF 48 DEGREES 12 MINUTES 25 SECONDS, A CHORD BEARING AND DISTANCE OF SOUTH 63 DEGREES 50 MINUTES 31 SECONDS WEST, 163.35 FEET AND HAVING AN ARC DISTANCE OF 168.27 FEET TO A CAPPED 518 -INCH ROD SET STAMPED "WINDROSE LAND SERVICES" MARKING THE SOUTHWESTERLY CORNER OF THE HEREIN DESCRIBED TRACT, SAME BEING THE Lawyers Title Insurance Corporation Form T -1 OTP (GP #: 1037000242) Page 1 Policy No. B06- 0089793 G.F. No. 1037000242 SOUTHWESTERLY CORNER OF SAID LOT 9 AND THE SOUTHEASTERLY CORNER OF LOT 8, IN SAID BLOCK 3 OF THE REDMOND TERRACE SUBDIVISION 1ST INSTALLMENT; THENCE NORTH 02 DEGREES 11 MINUTES 46 SECONDS WEST, ALONG AND WITH THE COMMON LINE OF SAID LOTS 8 AND 9, A DISTANCE OF 124.63 FEET TO A COTTON SPINDLE FOUND MARKING THE NORTHWESTERLY CORNER OF THE HEREIN DESCRIBED TRACT, SAME BEING THE NORTHEASTERLY CORNER OF SAID LOT 8 AND THE MOST SOUTHERLY CORNER OF THAT CERTAIN CALLED 3.956 ACRE TRACT OF LAND DESCRIBED IN VOLUME 1375, PAGE 284 OF THE BRAZOS COUNTY DEED RECORDS; THENCE NORTH 39 DEGREES 44 MINUTES 19 SECONDS EAST, ALONG AND WITH THE SOUTHEASTERLY LINE OF SAID 3.956 ACRE TRACT, A DISTANCE OF 124.70 FEET TO A 112 -INCH IRON ROD FOUND IN THE SOUTHWESTERLY LINE OF SAID 0.364 ACRE TRACT, MARKING THE MOST NORTHERLY CORNER OF THAT HEREIN DESCRIBED TRACT, SAME BEING THE MOST NORTHERLY CORNER OF SAID LOT 10; THENCE SOUTH 50 DEGREES 15 MINUTES 41 SECONDS EAST, ALONG AND WITH THE COMMON LINE OF SAID LOT 10 AND 0.364 ACRE TRACT, A DISTANCE OF 150.00 FEET TO THE PLACE OF BEGINNING AND CONTAINING 0.5898 ACRE OR 25,693 SQUARE FEET OF LAND. NOTE: The Company is prohibited from insuring the area or quantity of the land described herein. Any statement in the legal description contained in Schedule "A" as to area or quantity of land is not a representation that such area or quantity is correct, but is made only for Informal identification purposes and does not override Item 2 of Schedule "B" hereof. Lawyers Title Insurance Corporation T -1 OwnerTitlePolicy Page 2 Rev. 11102 • SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of the terms and conditions of the leases or easements insured, if any, shown in Schedule A and the following matters: 1. The following restrictive covenants of record itemized below (We must either insert specific recording data or delete this exception): Restrictive Covenants recorded in/under Volume 188, Page 295, Volume 188, Page 297 and Volume 190, Page 74 of the Deed Records of BRAZOS County, Texas, but omitting any covenant or restriction based on race, color, religion, sex, handicap, familial status, or national origin. 2. Shortages in area. 3. Homestead or community property or survivorship rights, if any, of any spouse of any insured. 4. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities, a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or b. to lands beyond the line of harbor or bulkhead lines as established or changed by any government, or c. to filled -in lands, or artificial islands, or d. to statutory water rights, including riparian rights, or e. to the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that area or easement along and across that area. 5. Standby fees, taxes and assessments by any taxing authority for the year 2006, 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 (We must insert matters or delete this exception.): a. Rights of parties In possession. b. 30' building line across front of property adjacent to Redmond Drive; 20' utility easement centered across rear of property, and any and all easements as reserved on plat recorded in Volume 188, Page 295, Deed Records of Brazos County, Texas. c. 30' building line across front of property; 10' building line to any interior lot line; 25' building line across rear of property; 20' utility easement centered across rear of property; said easements are also reserved as drainage easements, and any and all easements as set out in restrictions recorded in Volume 188, Page 297, and Volume Lawyers Title Insurance Corporation Form T -1 OTP (GF #: 1037000242) Page 3 Policy No. B06- 0089793 190, Page 74, both in the Deed Records of Brazos County, Texas. Lawyers Title insurance Corporation By Authoriz d Countersignature Lawyers Title Insurance Corporation Form T -1 OTP (GF #: 1037000242) Page 4 Policy No. B06 -0089793 • • r • Vf31TIONS AND STIPULATIONS - CONTINL 7, DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE, 13. SUBROGATION UPON PAYMENT OR SETTLEMENT. This policy is a contract of indemnity against actual monetary loss or (a) The Company's Right of Subrogation. damage sustained or incurred by the insured claimant who has suffered loss or Whenever the Company shall have settled and paid a claim under this damage by reason of matters insured against by this policy and only to the policy, all right of subrogation shall vest in the Company unaffected by any act extent herein described. of the insured claimant. (a) The liability of the Company under this policy shall not exceed the The Company shall be subrogated to and be entitled to all rights and least of: remedies that the insured claimant would have had against any person or (i) the Arnount of Insurance stated in Schedule A; property in respect to the claim had this policy not been issued If requested (ii) the difference between the value of the insured estate or interest by the Company, the insured claimant shall transfer to the Company all rights as insured and the value of the insured estate or interest subject to the defect, and remedies against any person or property necessary in order to perfect this lien or encumbrance insured against by this policy at the date the insured right of subrogation, The insured claimant shall permit the Company to sue, Claimant is required to furnish to Company a proof of loss or damage in compromise or settle in the name of the insured claimant and to use the name accordance with Section 5 of these Conditions and Stipulations. of the insured claimant in any transaction or litigation involving these rights or (b) In the event the Amount of Insurance stated in Schedule A at the Date remedies. of Policy is less than 80 percent of the value of the insured estate or interest or If a payment on account of a claim does not fully cover the loss of the the full consideration paid for the land, whichever is less, or if subsequent to insured claimant, the Company shall be subrogated to these rights and the Date of Policy an improvement is erected on the land which increases the remedies in the proportion that the Company's payment bears to the whole value of the insured estate or interest by at least 20 percent over the Amount of amount of the loss. Insurance stated in Schedule A, then this Policy is subject to the following: If loss should result from any act of the insured claimant, as stated above, (1) where no subsequent improvement has been made, as to any that act shall not void this policy, but the Company, in that event. shall be partial loss, the Company shall only pay the loss pro rata in the proportion that required to pay only that part of any losses insured against by this policy that the amount of insurance at Date of Policy bears to the total value of the insured shall exceed the amount, if any, lost to the Company by reason of the estate or interest at Date of Policy; or impairment by the insured claimant of the Company's right of subrogation. (ii) where a subsequent improvement has been made, as to any (b) The Company's Rights Against Non- insured Obligors. partial loss, the Company shall only pay the loss pro rata in the proportion that The Company's right of subrogation against non - insured obligors shall 120 percent of the Amount of Insurance stated in Schedule A bears to the sum exist and shall include, without limitation, the rights of the insured to of the Amount of Insurance stated irt Schedule A and the amount expended for indemnities, guaranties, other policies of insurance or bonds, notwithstanding the improvement. any terms or conditions contained in those instruments that provide for The provisions of this paragraph shall not apply to costs, attorneys' fees subrogation rights by reason of this policy. and expenses for which the Company is liable under this policy, and shall only apply to 'that portion of any loss which exceeds, in the aggregate, 10 percent 14. ARBITRATION. of the Amount of Insurance stated in Schedule A. Unless prohibited by applicable law or unless this arbitration section is (c) The Company will pay only those costs, attorneys' fees and expenses deleted by specific provision in Schedule B of this policy, either the Company incurred in accordance with Section 4 of these Conditions and Stipulations. of the Insured may demand arbitration pursuant to the Title Insurance Arbitration Rules or the American Arbitration Association. Arbitrable matters 8. APPORTIONMENT. may include, but are not limited to, any controversy or claim between the If the land described in Schedule A consists of two or more parcels that Company and the Insured arising out of or relating to this Policy, and service of are not used as a single site, and a loss is established affecting one or more of the Company in connection with its issuance or the breach of a policy provision the parcels but not all, the loss shall be computed and settled on a pro rata or other obligation. All arbitrable matters when the Amount of Insurance is basis as if the amount of insurance under this policy was divided pro rata as to $1,000,000 or less SHALL BE arbitrated at the request of either the Company the value on Date of Policy of each separate parcel to the whole, exclusive of or the Insured, unless the insured is an individual person (as distinguished any improvements made subsequent to Date of Policy, unless a liability or from a corporation, trust, partnership, association or other legal entity) All value has otherwise been agreed upon as to each parcel by the Company and arbitrable matters when the Amount of Insurance is in excess of $1,000,000 the insured at the time of the issuance of this policy and shown by an express shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this Policy and under the Rules in effect on the date the statement or by an endorsement attached to this policy. demand for arbitration is made or, at the option of the Insured, the Rules in effect at the Date of Policy shall be binding upon the parties. The award may 9, LIMITATION OF LIABILITY. include attorneys' fees only if the laws of the state in which the land is located (a) If the Company establishes the title, or removes the alleged defect, permit a court to award attorneys' fees to a prevailing party. Judgment upon lien or encumbrance, or cures the lack of a right of access to or from the land, the award rendered by the Arbitrator(s) may be entered in any court having all as insured, or takes action in accordance with Section 3 or Section 6, in a jurisdiction thereof. reasonably diligent manner by any method, including litigation and the The Law of the situs of the land shall apply to any arbitration under the completion of any appeals therefrom, it shall have fully performed its Title Insurance Arbitration Rules. obligations with respect to that matter and shall not be liable for any loss or A Copy of the Rules may be obtained from the Company upon request. damage caused thereby. (b) In the event of any litigation, including litigation by the Company or 15. LIABILITY LIMITED TO THIS POLICY: POLICY ENTIRE CONTRACT. with the Company's consent, the Company shall have no liability far loss or (a) This policy together with all endorsements, if any, attached hereto by damage until there has been a final determination by a court of competent the Company is the entire policy and contract between the insured and the jurisdiction, and disposition of all appeals therefrom, adverse to the title as Company. In interpreting any provision of this policy, this policy shall be insured. construed as a whole. (c) The Company shall not be liable for loss or damage to any insured for (b) Any claim of loss or damage, whether or not based on negligence, liability voluntarily assumed by the insured in settling any claim or suit without and which arises out of the status of the title to the estate or interest covered the prior written consent of the Company. hereby or by any action asserting such claim, shall be restricted to this policy. 10. REDUCTION OF INSURANCE: REDUCTION OR TERMINATION OF (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the LIABILITY. President, a Vice President, the Secretary, an Assistant Secretary, or All payments under this policy, except payments made for costs, attorneys' validating officer or authorized signatory of the Company. fees and expenses, shall reduce the amount of the insurance pro tanto. 16. SEVERABILITY. 11. LIABILITY NONCUMULATIVE. in the event any provision of the policy is held invalid or unenforceable It is expressly understood that the amount of insurance under this policy under applicable taw, the policy shall be deemed not to include that provision shall be reduced by any amount the Company may pay under any policy and all other provisions shall remain in full force and effect. insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed. assumed, or taken subject, or which is hereafter executed 17. NOTICES WHERE SENT. by an insured and which is a charge or lien on the estate or interest described All notices required to be given the Company and any statement in writing or referred to in Schedule A, and the amount so paid shalt be deemed a required to be furnished the Company shall include the number of this policy payment under this policy to the insured owner, and shall be addressed to: Consumer Affairs Department, P.O. Box 27567, 12. PAYMENT OF LOSS. Richmond, Virginia 23261 -7567 (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed, in COMPLAINT NOTICE. which case proof of loss or destruction shall be furnished to the satisfaction of Should any dispute arise about your premium or about a claim that you the Company. have filed, contact the agent or write to the Company that Issued the (b) When liability and the extent of loss or damage has been definitely policy. If the problem is not resolved, you also may write the Texas fixed In accordance with these Conditions and Stipulations, the loss or damage Department of Insurance, P.O. Box 149091, Austin, TX 78714 -9091, Fax shall be payable within 30 days thereafter. No. (512) 475 -1771. This notice of complaint procedure Is for Information only and does not become a part or condition of this policy.