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Coker Property (2)r Owner Policy of Title Insurance Issued by LeOFFICE 76 191 - Fidelity National TiOF CITY vRETARY INSURANCE COMPANY POLICY 27-34-93- 2 6 9 0 NUMBER SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COV- ERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, FIDELITY NATIONAL TITLE INSURANCE COMPANY, an Arizona 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, contractor's, 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 HEREOF, Fidelity National Title Insurance Company has caused this Policy to be executed by its President under the seal of the Company, but this Policy is to be valid only when it bears an authorized countersignature, as of the date set forth in Schedule A. FIDELITY NATIONAL TITLE INSURANCE COMPANY 'tTIE ,Nbuq By A,-, Z'o4OAPORN � SEAL President Attest sectett" FORM 27-34-93 (1-1-93) TEXAS FORM T - 1: OWNER POLICY OF TITLE INSURANCE REPRINTED (1/94) Effective 1-1-93 OWNER POLICY OF TITLE INSURANCE SCHEDULE A Policy No.: 27-34-93-2690 Policy Date: July 10, 1998 of 03:08 p.m. Policy Amount: $60,000.00 Premium: $795.80 1 . Name of Insured: THE CITY OF SOUTHLAKE 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: THE CITY OF SOUTHLAKE 4. The land referred to in this Policy is described as follows: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED 1 GF No.: 160670-T-66 GF No. 160670-T-66 Policy No. 27-34-93-2690 EXHIBIT "A" BEING a tract of land situated in the L. LINCOLN SURVEY, Abstract No. 981, and the F. THROOP SURVEY, Abstract No. 1 51 1, Tarrant County, Texas, and being the remainder of that tract conveyed to Marsha L. Coker recorded in Volume 9937, Page 1809, Deed Records of Tarrant County, Texas, said tract being more particularly described by metes and bounds as follows: BEGINNING at a 1/2 inch iron rod found on the North line of a tract of land conveyed to U.S.A., said point being the Southwest corner of Lot 1, Block 1, RANCH OF LONESOME DOVE recorded in Cabinet A, Slide 1038, Deed Records of Tarrant County, Texas; THENCE South 88 degrees 36 minutes 45 seconds West, along the North line of said U.S.A. tract, 248.96 feet to a U.S.A. concrete monument #C -260-F-6 for corner; THENCE South 11 degrees 33 minutes East, 259.67 feet to a U.S.A. concrete monument #C -260-F-7 for corner; THENCE North 84 degrees 34 minutes 45 seconds West, 287.29 feet to a 1/2 inch iron rod found for corner on the East line of Lonesome Dove Road; THENCE North 00 degrees 37 minutes 30 seconds East, along the East line of Lonesome Dove Road, 555.93 feet to a 1/2 inch iron rod found for corner on the North line of a 60 foot road easement; THENCE East, along the North line of said 60 foot road easement, 209.88 feet to a point for corner, being the Northwest corner of a tract of land conveyed to M. Guidry recorded in Volume 11133, Page 197, Deed Records of Tarrant County, Texas; THENCE South 3 degrees 02 minutes 52 seconds East, along the West line of said Guidry tract, 208.70 feet to a 5/8 inch iron rod found for corner; THENCE East, along the South line of said Guidry tract, 104.40 feet to a post for corner; THENCE North 3 degrees 02 minutes 52 seconds West, along the East line of said Guidry tract, 208.70 feet to a point for corner on the North line of aforementioned 60 foot road easement; THENCE East, along the North line of said 60 foot road easement, 146.56 feet to a point for corner; THENCE South 00 degrees 1 1 minutes 50 seconds East 30.0 feet to a point for corner in the centerline of said road easement; THENCE North 89 degrees 54 minutes 40 seconds East along the centerline of said road easement, 15.44 feet to a nail for corner; THENCE South 00 degrees 05 minutes 20 seconds East, at 30.0 feet to the Northwest corner of aforementioned Lot 1, Block 1, RANCH OF LONESOME DOVE, continuing along the West line of said Lot 1 a total distance of 292.62 feet to the POINT OF BEGINNING. THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED 2 GF No. 160670-T-66 Policy No. 27-34-93-2690 NOTE: THE COMPANY DOES NOT REPRESENT THAT THE ACREAGE AND/OR SQUARE FOOTAGE CALCULATIONS ARE CORRECT. THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED 3 GF No. 160670-T-66 Policy No. 27-34-93-2690 OWNER POLICY OF TITLE INSURANCE SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorney's fees or expenses) that arise by reason of the terms and conditions of the leases or easements insured, if any, shown in Schedule A and the following matters: 2. Any shortages in area. 3. Homestead or community property or survivorship rights, if any, of any spouse of any insured. 4. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities, a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans. or b. to lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or c. to filled-in lands, or artifical 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 the area. 5. Standby fees, taxes and assessments by any taxing authority for the year 1998, and subsequent years, and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership. 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): THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED 4 7. No liability is assumed of the boundary lines, dated June 25, 1998. GF No. 160670-T-66 Policy No. 27-34-93-2690 by reason of the encroachment or protrusion of fences into or outside as shown on survey prepared by Roland Rodriquez, RPLS No. 4987, 8. No liability is assumed by reason of the location of frame shed over easement, and as shown on survey prepared by Roland Rodriguez, RPLS No. 4987, dated June 25, 1998. 9. No liability is assumed by reason of power poles and overhead power lines, as shown on survey prepared by Roland Rodriguez, RPLS No. 4987, dated June 25, 1998. 10. Flowage easement contained in Quit -Claim Deed from the United States of America to Leona Tanner, dated November 22, 1960, filed February 9, 1981, recorded in Volume 3527, Page 427, Deed Records of Tarrant County, Texas. 11. Easement awarded to Texas Power & Light Company by Agreed Judgment in Cause No. 67-96353-86, 67th Judicial District Court, Tarrant County, Texas, dated July 27, 1988, Certified Copy filed August 3, 1988, recorded in Volume 9343, Page 1240, Deed Records of Tarrant County, Texas. 12. Easement for utilities and access granted to the City of Grapevine, Texas, by Marsha L. Coker, by instrument dated November 7, 1995, filed November 15, 1995, recorded in Volume 12168, Page 2112 of the Deed Records of Tarrant County, Texas. 13. Easement contained in Warranty Deed from Fred Joyce, Trustee, to Roadrunner Investments, Inc., dated November 9, 1976, filed November 16, 1976, recorded in Volume 6127, Page 291, Deed Records of Tarrant County, Texas. 14. Easements contained in Deed of Exchange executed by Fred Joyce, et al, dated November 9, 1976, filed November 16, 1976, recorded in Volume 6127, Page 339, Deed Records of Tarrant County, TExas. 15. 1/8, of all the oil, gas and other minerals, the royalties, bonuses, rentals and all other rights in connection with same are excepted herefrom, as the same are described in instrument from LEONA TANNER, to J. W. TANNER, dated March 1, 1950, filed March 1, 1950, recorded in Volume 2168, Page 271 of the Deed Records of Tarrant County, Texas; reference to which instrument is hereby made for all purposes. TITLE to said interest not checked subsequent to date of aforesaid instrument. 16. Rights of parties in possession. THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED 5 Countersigned FIDELITY NATIONAL/'11\E INSURANCE COMPANY Authorized-S-ignatory GF No. 160670-T-66 Policy No. 27-34-93-2690 THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED 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 which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2, Rights of eminent domain unless notice of the exercise thereof has been recorded in the ublic records at Date of Policy, but not excluding from coverage any taking that has occurred prior to Date of Policy which would be bundinq on the rights of a purchase for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matt6rs: (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 vestin in the person named in para raph 3 of Schedule A the estate or interest insured by this, policy, by reason of the operation of federal bankruptcy, state insolvency, oq7 other state or federal creditor' rigqhts laws that is based on either (i) the, transaction creating the estate or interest ins red b , this Polic bean deemed a, fraudulent gonve ance or fraudulent traps- fer or a voidable distributiopn or voidable dividend a the subordination or rec�iaractdrization, of the estatee, or interest insured by this Pollycy as a result of the application of the doctrine of egwtable subordination, or (iii) th� �ransactuon creatingthe estate or interest, insured bV this Policy being deemed a preferential transfer except where the preferential transfer results from the failure of the Company or its issun agent to time) 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 judgment or I& creditor. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. The following terms when used in this Policy mean: (a) "insured": the insured named in Schedule A, and, subject to any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate, partnership or fiduciary successors, and specifically, without limitation, the following: (i) the successors in interest to a corporation resulting from merger or consolidation or the distribution of the assets of the corporation upon partial or complete liquidation; ii) the partnership successors in interest to a general or limited partnership which dissolves but does not terminate; iii) the successors in interest to a general or limited partnership resulting from the distribution of the assets of the general or limited partnership upon partial or complete liquidation; iv) the successors in interest to a joint venture resulting from the distribution of the assets of the joint venture upon partial or complete liquidation; v) the successor or substitute trustee(s) of a trustee named in a written trust instrument; or the successors in interest to a trustee or trust resulting from the distribution of all or part of the assets of the trust to the beneficiaries thereof. b �yi) insured claimant": an insured claiming loss or damage. c "knowledge" or "known": actual knowledge, not constructive knowledge or notice that may be imputed to an insured by reason of the public records as defined in this Policy or any other, records which impart constructive notice of matters affecting the land. (d) "land": the land described or referred to in Schedule A, and improvements affixed thereto that by law constitute real property. The term "land" does not include any property beyond the lines of the area described or referred to in Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this Policy. (e) "mortgage": mortgage, deed of trust, trust deed, or other security instrument. f) "public records": records established under state statutes at Date of Policy for the purppose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. With respect to Section 1(a)(iv) of the Exclusions From Coverage, "public records" also shall include environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land is located. (g) "access": legal right of access to the land and not the physical condition of access. The coverage provided as to access does not assure the adequacy of access for the use intended. 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. The coverage of this Policy shall continue in force as of Date of Policy in favor of an Insured only so long as the Insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of covenants of warrant made by the Insured in any transfer or conveyance of the estate or interest. This Policy shall not continue in force in favor of any purchaser from the Insured of either) an estate or interest in the land, or (ii) an indebtedness secured by a purchase money mortgage given to the Insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The Insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 4(a) below, or (ii) in case knowledge shall come to an Insured hereunder of any claim of title or interest that is adverse to the title to the estate or interest, as insured, and that might cause loss or damage for which the Company may be liable by virtue of this Policy. If prompt notice shall not be given to the Company, then as to the Insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any Insured under this Policy unless the Company shall be prejudiced by the failure and then onlyto the extent of the prejudice. When, after the date of the Policy, the Insured notifies the Company as required herein of a lien, encumbrance, adverse claim or other dfect in title to the estate or interest in the land insured by this Policy that is not excluded or excepted from the coverage of this Policy, the Company shall promptly investigate the charge to determine whether the lien, encumbrance, adverse claim or defect is valid and not barred by law or statute. The Company shall notify the Insured in writing, within a reasonable time, of its determination as to the validity or invalidity of the Insured's claim or charge under the Policy. If the Company concludes that the lien, encumbrance, adverse claim or defect is not covered by this Policy, or was otherwise addressed in the closing of the transaction in connection with which this Policy was issued, the Company shall specifically advise the Insured of the reasons for its determination. If the Company concludes that the lien, encumbrance, adverse claim or defect is valid, the Company shall take one of the following actions: (i) institute the necessary proceedings to clear the lien, encumbrance, adverse claim or defect from the title to the estate as insured; (ii) indemnify the Insured as provided in this Policy; (iii) upon payment of appropriate premium and charges therefor, issue to the insured claimant or to a subsequent owner, mortgagee or holder of the estate or interest in the land insured by this Policy, a Policy of Title Insurance without excetion for the lien, encumbrance, adverse claim or defect, said Policy to be in an amount equal to the current value of the property or, if a Mortgagee Policy, the amount ofpthe loan; (iv) indemnify another title insurance company in connection with its issuance of a policy(ies) of title insurance without exception for the lien, encumbrance, adverse claim or defect; (v) secure a release or other document discharging the lien, encumbrance, adverse claim or defect; or (vi) undertake a combination of (i) through (v) herein. DEFENSE AND PROSECUTION OF ACTIONS: 11 f OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at, its Awn cost and without reasonable delay, shall provide for the defense of an Insured in litigation in which any third party asserts a adim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insured against by this Policy. The Company shall have the right to select counsel of its choice (subject to the right of the Insured to object for reasonable cause) to represent the Insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the Insured in the defense of those causes of action that allege matters not insured against by this Policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the title to the estate or interest as insured, or to prevent or reduce loss or damage to the Insured. The Company may take any appropriate action under the terms of this Policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this Policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this Policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse fu gment or order. (d) In all cases where this Policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, the Insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of the Insured for this purpose. Whenever requested by the Company, the Insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act that in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest as insured. If the Companyy is prejudiced by the failure of the Insured to furnish the required cooperation, the Company's obligations to the Insured under the Policy shall terminate, mcludmg any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 91 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by this Policyy that constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage, the Company's obligations to the Insured under the Policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. In addition, the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the insured claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph shall terminate any liability of the Company under this Policy as to that claim. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS: TERMINATION OF LIABILITY. In case of a claim under this Policy, the Company shall have the following additional options: (a) To pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the Amount of Insurance under this Policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations to the Insured under this Policy, other than to make the payment required, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the Policy shall be surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle Wlth Parties Other than the Insured or With the Insured Claimant. (i) To pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this Policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) To pay or otherwise settle with the insured claimant the loss or damage provided for under this Policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs (b)(i) or (ii), the Company's obligations to the Insured under this Policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. DETERMINATIONI EXTENT OF LIABILITY AND COINSURANCE. This Policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this Policy and only to the extent herein described. (a) The liability of the Company under this Policy shall not exceed the least of: �i) the Amount of Insurance stated in Schedule A; ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this Policy at the date the insured claimant is required to furnish to Company a proof of loss or damage in accordance with Section 5 of these Conditions and Stipulations. (b) In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land, whichever is less, or if subsequent to the Date of Policy an improvement is erected on the land which increases the value of the insured estate or interest by at least 20percent over the Amount of Insurance stated in Schedule A, then this Policy is subject to the following: (i) where no subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that the Amount of Insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy, or (ii) where a subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement. The provisions of this paragraph shall not apply to costs, attorneys' fees 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 of the Amount of Insurance stated in Schedule A. (c The Com an will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. PORTION If the land described in Schedule A consists of two or more parcels that are not used as a single site, and a loss is established affecting one or more of the parcels but not all, the loss shall be computed and settled on a pro rata basis as if the Amount of Insurance under this Policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, unless a liability or value has otherwise been aoreed upon as to each parcel by the Company and the Insured at the time of the issuance of this Policy and shown by an express statement or by an endorsement attached to this Policy. LIMITATION OF LIABILITY. (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, all as insured, or takes action in accordance with Section 3 or Section 6, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title as insured. (c) The Company shall not be liable for loss or damage to any Insured for liability voluntarily assumed by the Insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSUKAnct ,cruor. �wP urc �R'rn�3r�� wn yr ��r. All payments under this Policy, excep yin— made for costs, attorneys' fees anc lenses, shall reduce the amount of the insurance ppro tanto. 11. LIA43ILA NdONCUMULATIVE. It is expressly understood that the Amount of Insurance under this Policy shall be reduced by any amount the Company may, pay under any Policy 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 by an Insured and which is a charge or lien on the estate or interest described or referred to in Schedule A and the amount so paid shall be deemed a payment under this Policy to the insured owner. 12. PAYMENT bF LOSS (a) No payment shall be made without producing this Policy for endorsement of the payment unless the Policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability geand the extent of loss or damayge has been definitely fixed in accordance with these Conditions and Stipulations, the 13. SUBROGATION UPONI PAYMENT Ole R SETTLEMthereafter. (a) The Company's Right of Subrogation. Whenever the Company shall have settled and paid a claim under this Policy, all rights of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies that the insured claimant would have had against any person or Property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated to these rights and remedies in the proportion that the Company's payment bears to the whole amount of the loss. If loss should result from any act of the insured claimant, as stated above, that act shall not void this Policy, but the Company, in that event, shall be required to pay only that part of any losses insured against by this Policy that shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (b) The Company's Right Against Non -Insured Obligors. The Company s right of subrogation against non-insured obligors shall exist and shall include, without limitation, the rights of the Insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments that provide for subrogation rights by reason of this Policy. 14. ARBITRATION Unless prohibited by applicable law or unless this arbitration section is deleted by specificprovision in Schedule B of this Policy either the Company or the Insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitration matters may include, but are not limited to, any controversyor claim between the Company and the Insured arising out of or relating to this Policy, any service of the Company in connection withits issuance or the breach of a Policy provision or other obligation. All arbitrable matters, when the Amount of Insurance is $1,000,000 or less SHALL BE arbitrated at the request of either the Company or the Insured, unless the Insured is an individual person (as distinguished from a corporation, trust, partnership association or other legal entity). All arbitrable matters when the Amount of Insurance is in excess of $1,000 000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the Insured the Rules in effect at Date of Policy shall be bindint upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having Lurisdiction thereof. The�law of the situs of the land shall apply to an arbitration undertheTitle Insurance Arbitration Rules. 15. LIABILITY LIMITED TO THIobtained POLICY: POLICYoENTIRE CONTRACT. (a) This Policy together with all endorsements, if any,attached hereto by the Company is the entire Policy and contract between the Insured and the Company. In interpreting any provision of this Policy, this Policy shall be construed as a whole. (b) Any claim of loss or damage whether or not based on negligence and which arise out of the status of the title to the estate or interest covered hereby or by any action asserting such claim shall be restricted to this Policy. (C) eitherlthe President, anViicePresident, the Secretary an AssistantpSecretarytorgvalidating Officer hereon or authorizedhsignatorynof the Company. 16. SEVERABILITY. In the event any provision of the Policy is held invalid or unenforceable under applicable law, the Policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 17 NOTICES WHERE SENT All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this Policy and shall be addressed to the Company at FNTIC Claims Administration, 2100 S. E. Main Street, Suite 400, Irvine California 92714. COMPLAINT NOTICE. Should any dispute arise about your premium or about a claim that you have filed, contact the agfent or write to the Com any that issued the Policy. If the pproblem is not resolved, you also may write the Texas De artment o Insurance, P.O. Box 14900, Austin, TX 78714-9091, Fax No. (512) 475-1771. This notice of complaint procedure is for information only and does not become a Dart or condition of this Policy. 44 o � F"' z U-1 N GC O ai U ci o o, N ou LL Ar M 7 M i.. Q TCM ro=Mr zz ��►n w 00 rn a N to a S ti Ln Oa=� li ~ N tx0 (U - : to LL +.► v) (ACO X I`- j2 j2 0 = E0 xQ PEN �z �� o I— __ co ,o W W 01f0U 3 4M y O .. N O.CN U 3N Z O N O M O o�W(r Wt M Go O V N = Lr) N U) ii: T - 1I I I I I I- U o — a