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Title Insurance • • If you want information about coverage or need assistance to resolve complaints, please call our toll free number: 1-800-729-1902. If you make a claim under your policy, you must furnish written notice in accordance with Section 3 of the Conditions and Stipulations. Visit our World Wide Web site at: http: /hvww.stewart.com • OWNER'S POLICY OF TITLE INSURANCE ISSUED BY s tew a rf .title guaranty company Any notice of claim and any other notice or statement in writing required to be given the Company under this Policy must be given to the Company at the:acidress shown in Section 18 of the Conditions. ::COVERED RISKS SUBJECTTOTHE EXCLUSIONS FROM COVERAGE; THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS, STEWART TITLE GUARANTYGOMPANY; a,Texas? .corporation (the "Company") insures, as of Date of Policy and, to the extent stated in Covered Rsks 9and 10; after`Date. of loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by'reason:of 1. Title being vested other than as 2. Any defect in or lien or encumbrance on itie7it1e.:7fils CoveredR.isk includes but is not limited to insurance against loss from: (a) A defect in the Title caused by: (i) forgery, fraud, undue influence, duress; inceinpetencncapacity or impersonation; (ii) failure of any person or Entity to have au y,,i authorized a transfer or conveyance; (iii) a document affecting Title not properly created, executed, seated, acknowledged, notarized or delivered; (iv) failure to perform those acts necessa'OO:create a dooument.by,;electronic means authorized by law; (v) a document executed under a falsiifled; :expired or otherwise :,invalid power of attorney; (vi) a document not properly filed, recorded.'.v:r indexed:InythP.ublic Records including failure to perform those acts oni means authorized b by electronic Y :: :':: -�:= ,,.;,......,:::•_: - ..;. .:.;..,... . - ;:. (vii) a defective judicial or administratiie proceedin < : =`_;` (b) The lien of real estate taxes or assessrtler i_s. i mposed ort theTttte`by::f governmental authority due or payable, but unpaid. P (c) Any c encroachment, encumbrance, violation; variationorradverse circumstance affecting the Title that would be disclosed by an accurate and complete land :survey' :of.'the`Land. Ttie : ',term "encroachment" includes encroachments of existing Improvements located on the Lar d onto..adjoining .land; :and encroachments 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. a Lack of good and indefeasible Title. 4. No right of access to and from the Land. Covered Risks continued on next page- IN WITNESS WHEREOF, Stewart Title Guara ityICornpany ;ha `caused this policy to be signed and sealed by its duly authorized officers as of Date of Policy shown in Countersi•n, • • ..r.� • r stewa lrk &! fer, ( ) oN,e p . title guaranty company Senior Chairman the Boar .rized Signature gP , � n d m, 41 p� C. lE. if f�• / / AmerlPolnt Title Houston Chairman o the 13 .rd Company Houston, TX ' 4f City, State . resident Serial No. 0-5951- 000055139 T -1 Owners Policy (5 - 1 - 08) Agent ID: 430184 File Number 0728577DD • • COVERED RISKS CONTINUED FROM PAGE 1 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, state insolvency or similar creditors' rights laws by reason of the failure of its recording in the Public Records: (1) 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. 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 governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting or relating to: (i) 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 1 (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 governmental 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. (d) "Insured ": the Insured named in Schedule A. The following terms when used in this policy mean: (i) The term "Insured" also includes: (a) "Amount of Insurance ": the amount stated In Schedule A, as may be (A) successors to the Title of the Insured by operation of law increased or decreased by endorsement to this policy, increased by as distinguished from purchase, including heirs, devisees, Section 8(b), or decreased by Sections 10 and 11 of these Conditions. survivors, personal representatives or next of kin; (b) "Date of Policy": The date designated as "Date of Policy" in Schedule (8) successors to an Insured by dissolution, merger, A consolidation, distribution Or reorganization; (c) "Entity ": A corporation, partnership, trust, limited liability company or (C) successors to an Insured by its conversion to another other similar legal entity. kind of Entity; Page 2 • • CONDITIONS Continued (D) a grantee of an Insured under a deed delivered without adverse claim or defect is valid, the Company shall take one of the payment of actual valuable consideration conveying the Title; following actions: (i) institute the necessary proceedings to clear the lien, (1) 11 the stock, shares, memberships, or other equity encumbrance, adverse claim or detect from the Title as insured; (ii) interests of the grantee are wholly -owned by the named indemnify the insured as provided in this policy; (iii) upon payment of Insured, appropriate premium and charges therefor, issue to the Insured Claimant (2) It the grantee wholly owns the named Insured, or to a subsequent owner, mortgagee or holder of the estate or interest in (3) If the grantee Is wholly -owned by an affiliated Entity of the Land insured by this policy, a policy of title insurance without exception the named Insured, provided the affiliated Entity and the for the lien, encumbrance, adverse claim or defect, said policy to be in an named Insured are both wholly -owned by the same person amount equal to the current value of the Land or, if a mortgagee policy, the or Entity, Cr amount of the loan; (iv) indemnity another title insurance company in (4) 11 the grantee is a trustee or beneficiary of a trust connection with its issuance of a policy(ies) of title insurance without created by a written instrument established by the Insured exception for the lien, encumbrance, adverse claim or defect; (v) secure named in Schedule A for estate planning purposes. a release or other document discharging the lien, encumbrance. adverse (ii) With regard to (A), (B), (C) and (D) reserving, however, all claim or defect; or (vi) undertake a combination of (i) through (v) herein. rights and defenses as to any successor that the Company would have had against any predecessor Insured. 4. PROOF OF LOSS. (e) "Insured Claimant "; an Insured claiming loss or damage. In the event the Company is unable to determine the amount of loss or (1) "Knowledge" or "Known ": actual knowledge, not constructive damage, the Company may, at its option, require as a condition of payment knowledge or notice that may be imputed to an Insured by reason of the that the Insured Claimant furnish a signed proof of loss. The proof of loss Public Records or any other records that impart constructive notice of must describe the defect, lien, encumbrance or other matter insured matters affecting the Title. against by, this policy that constitutes the basis of loss or damage and (g) "Land "; the land described in Schedule A, and affixed improvements shall state, to the extent possible, the basis of calculating the amount of • that by law constitute real property. The term "Land" does not include any the loss or damage. property beyond the lines of the area described In Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, 5. DEFENSE AND PROSECUTION OF ACTIONS. alleys, lanes, ways or waterways, but this does not modify or limit the (a) Upon written request by the Insured, and subject to the options extent that a right of access to and from the Land is insured by this policy. contained In Sections 3 and 7 of these Conditions. the Company, at its (h) "Mortgage ": mortgage, deed of trust, trust deed, or other security own cost and without unreasonable delay. shall provide for the defense of instrument, including one evidenced by electronic means authorized by an Insured in litigation in which any third party asserts a claim covered by law. this policy adverse to the Insured. This obligation is limited to only those (i) "Public Records ": records established under state statutes at Date stated causes of action alleging matters insured against by this policy. of Policy for the purpose of imparting constructive notice of matters relating The Company shall have the right to select counsel of its choice (subject to real property to purchasers for value and without Knowledge. With to the right of the Insured to object for reasonable cause) to represent the respect to Covered Risk 5(d), "Public Records" shall also include Insured as 10 those stated causes of action. It shall not be liable for and environmental protection liens filed in the records of the clerk of the will not pay the fees of any other counsel. The Company will not pay any United States District Court for the district where the Land is located. fees, costs or expenses Incurred by the Insured in the defense of those (j) "Title ": the estate or interest described in Schedule A. causes of action that allege matters not insured against by this policy. (k) "Unmarketable Title°: Title affected by an alleged or apparent matter (b) The Company shall have the right, in addition to the options contained that would permit a prospective purchaser or lessee of the Title or lender in Sections 3 and 7, at its own cost, to institute and prosecute any action on the Title to be released from the obligation to purchase, lease or lend if or proceeding or to do any other act that in its opinion may be necessary there is a contractual condition requiring the delivery of marketable title_ or desirable to establish the Title, as insured, or to prevent or reduce loss or damage to the Insured. The Company may take any appropriate action 2. CONTINUATION OF INSURANCE. under the terms of this policy, whether or not it shall be liable to the The coverage of this policy shall continue in force as of Dale of Policy in insured. The exercise of these rights shall not be an admission of liability favor 01 an Insured, but only so long as the Insured retains an estate or or waiver of any provision of this policy. 11 the Company exercises its interest in the Land, or holds an obligation secured by a purchase money rights under this subsection, It must do so diligently. Mortgage given by a purchaser from the Insured, or only so long as the (c) Whenever the Company brings an action or asserts a defense as • Insured shall have liability by reason of warranties in any transfer or required or permitted by this policy, the Company may pursue the litigation conveyance of the Title. This policy shall not continue in force in favor of to a final determination by a court of competent jurisdiction and it expressly any purchaser from the lnsured of either (1) an estate or interest in the reserves the right, in its sole discretion. to appeal from any adverse Land, or (11) an obligation secured by a purchase money Mortgage given judgment or order. When the Company has reasonable grounds to dispute to the Insured. coverage under this policy, the Company may reserve its rights to pay the claim and the costs of defense and seek reimbursement from the 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. Insured for all amounts paid for which there was no coverage. The Insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 5(a) below, or (ii) in case Knowledge shall 6. DUTY OF INSURED CLAIMANT TO COOPERATE. come to an Insured hereunder of any claim of title or interest that is (a) In all cases where this policy permits or requires the Company to adverse to the Title, as insured, and that might cause loss or damage for prosecute or provide for the defense of any action or proceeding and any which the Company may be liable by virtue of this policy, If the Company appeals, the Insured shall secure to the Company the right to so prosecute is prejudiced by the failure of the Insured Claimant to provide prompt or provide defense in the action or proceeding, Including the right to use, notice, the Company's liability to the Insured Claimant under the policy at its option, the name of the Insured for this purpose. Whenever requested shall be reduced to the extent of the prejudice. by the Company, the Insured, at the Company's expense, shall give the When, after the Date of the Policy, the Insured notifies the Company as Company all reasonable aid (1) in securing evidence, obtaining witnesses, . required herein of a lien, encumbrance, adverse claim or other defect in prosecuting or defending the action or proceeding, or effecting settlement, Title insured by this policy that is not excluded or excepted from the and (ii) in any other lawful act that in the opinion of the Company may be coverage 01 this policy, the Company shall promptly investigate the charge _ necessary or desirable to establish the Title or any other matter as insured. to determine whether the lien, encumbrance, adverse claim or defect or If the Company is prejudiced by the failure of the insured to furnish the other matter is valid and not barred by law or statute. The Company shall required cooperation, the Company's obligations to the Insured under the notify the Insured in writing, within a reasonable time, of Its determination policy shall terminate, including any liability or obligation to defend, as to the validity or invalidity of the Insured's claim or charge under the prosecute, or continue any litigation, with regard to the matter or matters policy. if the Company concludes that the lien, encumbrance, adverse requiring such cooperation. claim or defect is not covered by this policy, or was otherwise addressed (b) The Company may reasonably require the Insured Claimant to submit in the closing of the transaction in connection with which this policy was to examination under oath by any authorized representative of the issued, the Company shall specifically advise the Insured of the reasons Company and to produce for examination, inspection and copying, at for its determination, If the Company concludes that the lien, encumbrance, such reasonable times and places as may be designated by the authorized • Page 3 • • CONDITIONS Continued representative of the Company, all records, in whatever medium 9. LIMITATION OF LIABILITY, • maintained, including books, ledgers, checks, memoranda, (a) Ii the Company establishes the Title, or removes the alleged defect, correspondence, reports, e- mails, disks, tapes, and videos whether lien or encumbrance, or cures the lack of a right of access to or from the bearing a date before or after Date of Policy, that reasonably pertain to the Land, all as insured, or takes action in accordance with Section 3 or 7, in loss or damage. Further, If requested by any authorized representative of a reasonably diligent manner by any method, including litigation and the the Company, the Insured Claimant shall grant its permission, in writing, completion of any appeals, it shall have fully performed its obligations with for any authorized representative of the Company to examine, inspect respect to that matter and shall not be liable for any loss or damage and copy all of these records in the custody or control of a third party that caused to the Insured. reasonably pertain to the loss or damage. All information designated as (b) In the event of any litigation, including litigation by the Company or with confidential by the insured Claimant provided to the Company pursuant the Company's consent, the Company shall have no liability for loss or to this Section shall not be disclosed to others unless, in the reasonable damage until there has been a final determination by a court of competent judgment of the Company, it is necessary in the administration of the jurisdiction, and disposition of all appeals, adverse to the Title, as insured. claim. Failure of the Insured Claimant to submit for examination under (c) The Company shall not be liable for toss or damage to the Insured for oath, produce any reasonably requested information or grant permission liability voluntarily assumed by the insured in settling any claim or suit to secure reasonably necessary information from third parties as required without the prior written consent of the Company. In this subsection, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF claim. LIABILITY. (c) If the Insured demands that the Company accept a settlement offer All payments under this policy, except payments made for costs, that is not greater than the Amount of Insurance or if the Insured expressly attorneys' fees and expenses, shall reduce the Amount of Insurance by agrees that a settlement offer should be accepted, the Company has a the amount of the payment. right to be reimbursed if it has timely asserted its reservation of rights and notified the Insured that it intends to seek reimbursement if it pays to 11. LIABILITY NONCUMULATIVE. settle or defend a claim that is not covered by the policy. The Amount of Insurance shall be reduced by any amount the Company pays under any policy insuring a Mortgage to which exception is taken in • 7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION Schedule B or to which the Insured has agreed, assumed, or taken OF LIABILITY. subject or which is executed by an Insured after Date of Policy and which In case of a claim under this policy, the Company shall have the following is a charge or lien on the Title, and the amount so paid shall be deemed a additional options: payment to the Insured under this policy. (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the Amount of Insurance under this policy 12. PAYMENT OF LOSS. together with any costs, attorneys' fees and expenses incurred by the When liability and the extent of loss or damage have been definitely fixed Insured Claimant that were authorized by the Company up to the time of in accordance with these Conditions, the payment shall be made within payment or tender of payment and that the Company is obligated to pay. 30 days. Upon the exercise by the Company of this option, all liability and obligations of the Company to the Insured under this policy, other than to make the 13. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT. payment required in this subsection, shall terminate, including any liability (a) Whenever the Company shall have settled and paid a claim under or obligation to defend, prosecute, or continue any litigation. this policy, it shall be subrogated and entitled to the rights of the Insured (b) To Pay or Otherwise Settle With Parties Other than the Insured or Claimant in the Title and all other rights and remedies in respect to the With the Insured Claimant. claim that the Insured Claimant has against any person or property, to the (i) to pay or otherwise settle with other parties for or in the name of extent of the amount of any loss, costs, attorneys' fees and expenses an Insured Claimant any claim insured against under this policy. In paid by the Company. If requested by the Company, the Insured Claimant addition, the Company will pay any costs, attorneys' fees and shall execute documents to evidence the transfer to the Company of expenses Incurred by the Insured Claimant that were authorized by these rights and remedies.The Insured Claimant shall permit the Company the Company up to the time of payment and that the Company Is to sue, compromise or settle in the name of the Insured Claimant and to obligated to pay; or use the name of the Insured Claimant In any transaction or litigation (ii) to pay or otherwise settle with the Insured Claimant the loss or involving these rights and remedies. damage provided for under this policy, together with any costs, If a payment on account of a claim does not fully cover the loss of the attorneys' fees and expenses incurred by the Insured Claimant that Insured Claimant, the Company shall deter the exercise of its right to were authorized by the Company up to the time of payment and that recover until after the Insured Claimant shall have recovered its loss. the Company is obligated to pay. Upon the exercise by the Company (b) The Company's right of subrogation includes the rights of the Insured of either of the options provided for in subsections (b)(i) or (ii), the to Indemnities, guaranties, other policies of insurance or bonds. Company's obligations to the Insured under this policy for the claimed notwithstanding any terms or conditions contained in those instruments loss or damage, other than the payments required to be made, shall that address subrogation rights. . terminate, including any liability or obligation to defend, prosecute or continue any litigation. 14. ARBITRATION. Either the Company or the insured may demand that the claim or 8. DETERMINATION AND EXTENT OF LIABILITY. controversy shall be submitted to arbitration pursuant to the Title Insurance Thls policy Is a contract of Indemnity against actual monetary loss or Arbitration Rules of the American Land Title Association ( "Rules "). Except damage sustained or incurred by the Insured Claimant who has suffered as provided in the Rules, there shall be no joinder or consolidation with loss or damage by reason of matters insured against by this policy. claims or controversies of other persons. Arbitrable matters may include, (a) The extent of liability of the Company for loss or damage under this but are not limited to, any controversy or claim between the Company policy shall not exceed the lesser of: - and the Insured arising out of or relating to this policy, any service in (I) the. Amount of Insurance; or connection with its issuance or the breach of a policy provision, or to any an the difference between the value of the Title as insured and the other controversy or claim arising out of the transaction giving rise to this value of the Title subject to the risk insured against by this policy. policy. All arbitrable matters when the Amount of Insurance is $2,000,000 (b) If the Company pursues its rights under Section 3 or 5 and is or less shall be arbitrated at the option of either the Company or the • unsuccessful in establishing the Title, as insured, insured, unless the Insured is an individual person (as distinguished from (1) the Amount of Insurance shall be increased by 10 %, and an Entity). Alt arbitrable matters when the Amount of Insurance Is in (ii) the Insured Claimant shall have the right to have the loss or excess of $2,000,000 shall be arbitrated only when agreed to by both the damage determined either as of the date the claim was made by the Company and the Insured. Arbitration pursuant to this policy and under Insured Claimant or as of the date i1 is settled and paid. - the Rules shall be binding upon the parties. Judgment upon the award (c) In addition to the extent of liability under (a) and (b), the Company will rendered by the Arbitrator(s) may be entered in any court of competent also pay those costs, attorneys' fees and expenses incurred in accordance jurisdiction. with Sections 5 and 7 of these Conditions. Page 4 • • . • CONDITIONS Continued 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (a) This policy together with all endorsements, if any, attached to it 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 that arises out of the status of the Title or by any action asserting such claim, shall be restricted to this policy. (c) Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person, or expressly incorporated by Schedule A o1 this policy. (d) Each endorsement to this policy issued at any time is made a part of this policy and Is subject to all of its terms and provisions. Except as the • endorsement expressly states, it does not (1) modify any of the terms and provisions of the policy, (11) modify any prior endorsement, (iii) extend the Date of Policy or (iv) increase the Amount of insurance. Each Commitment, endorsement or other form, or provision in the Schedules to this policy that refers to a term defined in Section 1 of the Conditions shall be deemed to refer to the term regardless of whether the term is capitalized in the Commitment, endorsement or other form, or Schedule. Each Commitment, endorsement or other form, or provision in the Schedules that refers to the Conditions and Stipulations shall be deemed to refer to the Conditions of this policy. • 16. SEVERABILITY. In the event any provision of this policy, in whole or in part, is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision or such part held to be invalid and all other provisions shall remain in full force and effect. 17. CHOICE OF LAW; FORUM. (a) Choice of Law: The Insured acknowledges the Company has underwritten the risks covered by this policy and determined the premium charged therefor in reliance upon the law affecting interests in real property and applicable to the interpretation, rights, remedies or enforcement of policies of title insurance of the jurisdiction where the Land is located. Therefore, the court or an arbitrator shall apply the law of the Jurisdiction where the Land is located to determine the validity of claims against the Title that are adverse to the Insured. and in interpreting and enforcing the terms of this policy. In neither case shall the court or arbitrator apply its conflicts of laws principles to determine the applicable law. (b) Choice of Forum: Any litigation or other proceeding brought by the Insured against the Company must be tiled only in a state or federal court • within the United States of America or its territories having appropriate jurisdiction. 18. NOTICES, WHERE SENT. Any notice of claim and any other notice or statement in writing required to be given the Company under this Policy must be given to the Company at P.O. Sox 2029, Houston, TX 77252-2029. • -stewart Page 5 •w. portranty company • • OWNER'S POLICY OF TITLE INSURANCE Issued by Stewart Title Guaranty Company SCHEDULE A Name and Address of Title Insurance Company: STEWART TITLE GUARANTY COMPANY 1980 Post Oak Blvd., Suite 800, Houston, 77252 -2029 File No.: 0728577DD Policy No.: 0- 5951 - 000055139 Issued with Policy No M- 5952 - 000071665 Address for Reference only: Dowling Road, College Station, TX Amount of Insurance: $8,100,000.00 Premium: $43,038.75 Date of Policy: December 17, 2008, at 10:14 am 1. Name of Insured: Capstone - CS, LLC, an Alabama limited liability company 2. The estate or interest in the Land that is insured by this policy is: Fee Simple subject to, and the Company does not insure title to, and excepts from the description of the land, coal, lignite, oil, gas and other minerals in, under and that may be produced from the land, together with all rights, privileges, and immunities relating thereto; 3. Title is insured as vested in: Capstone - CS, LLC, an Alabama limited liability company 4. The Land referred to in this policy is described as follows: SEE ATTACHED EXHIBIT "A" • • FORM T -1: Owner's Policy of Title Insurance Page 1 • • Continuation of Schedule A Policy No. 0 -5951- 000055139 EXHIBIT "A" All that certain tract or parcel of land Lying and being situated in the Crawford Burnett Survey, Abstract No. 7, College Station, Brazos County, Texas. Said tract being the remainder of a called 134.041 acre tract as described by Deed to TLS Properties, Ltd., recorded in Volume 3091, Page 243 of the Official Public Records of Brazos County, Texas, and all of a called 4.99 acre tract as described by a deed to TLS Properties, Ltd., recorded in Volume 8735, Page 224 of the Official Public Records of Brazos County, Texas, and being more particularly described by metes and bounds in Exhibit "A" attached hereto and made a part hereof for all purposes. • FORM T -1: Owner's Policy of Title Insurance Page 2 • • • Exhibit A • METES AND BOUNDS DESCRIPTION OF AN ALL THAT CERTAIN TRACT OR PARCEL OF LAN) LYING AND BEING SITUATED IN THE CRAWFORD BURNETT SURVEY, ABSTRACT NO. 7, COLLEGE STATION, BRAZOS COUNTY, TEXAS. SAID TRACT. BEING '1'Hiti REMAINDER OF A CALLED 134.041 ACRE TRACT AS DESCRIBED BY A DEED TO TLS PROPERTIES LTD. RECORDED IN VOLUME 3091, PAGE 243 OF THE OEFICLAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS, AND ALL OF A CALLED 4.99 ACRE TRACT AS DESCRIBED BY A DEED TO TLS PROPERTIES, LTD. RECORDED IN VOLUME 8735, PAGE 224 OF THE OFFICIAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS. SAID TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING AT A 5/8 INCH IRON ROD FOUND ON THE NORTHWEST LINE OF DOWLING ROAD (A COUNTY MAINTAINED PUBLIC ROAD — VARIABLE WIDTH R.O.W.) MARKING THE SOUTH CORNER OF SAID REMAINDER OF 134.041 ACRE TRACT AND AN ANGLE POINT IN THE NORTHWEST LINE OF DOWLING ROAD; THENCE: N 48° 14' 40" W ALONG THE SOUTHWEST LINE OF SAID REMAINDER OF 134.041 ACRE TRACT, SAME BEING THE NORTHEAST. LINE OF THE WOODLANDS, ACCORDING TO THE PLAT RECORDED IN VOLUME 393, PAGE 521 OF THE DEED RECORDS OF BRAZOS COUNTY, TEXAS, AND' THE EXTENSION OF SAID NORTHEAST LINE, FOR A DISTANCE OF 1243.67 FEET TO A CONCRETE MONUMENT FOUND MABIONG THE NORTH CORNER OF TI-1F WOODLANDS AND THE EAST CORNER OF A CALLED TRACT OF LAND OWNED BY THE TEXAS A &M UNIVERSITY SYSTEM; THENCE: N 48° 24' 12" W ALONG THE COMMON LINE OF SAID REMAINDER OF 134.041 ACRE 'i'i(ACT AND SAID TEXAS A &M TRACT FOR A DISTANCE OF 496.23 FEET TO THE REMAINS OF AN OLD FENCE POST FOUND MARKING THE SOUTH CORNER OF A CALLED 43.633 ACRE TRACT AS DESCRIBED BY A DEED TO BVP 2818 PLACE, LP, RECORDED IiN VOLUME 7943, PAGE 180 OF THE OFFICIAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS, SAID 43.633 ACRE TRACT NOW KNOWN AS 2818 PLACE ACCORDING TO THE PLAT RECORDED IN VOLUME 8721, PAGE 259 OF THE OFFICIAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS; THENCE: N 41° 44' 04" E ALONG THE COMMON LINE OF SAID REMAINDER OF 134.041 ACRE TRACT AND SAID 2818 PLACE FOR A DISTANCE OF 2114.76 FEET TO A 5/8 I ICH IRON ROD FOUND ON THE SOUTH LINE OF FM 2818 (HARVEY MITCHELL PARKWAY — VARIABLE WITH R.O.W.) MARKING THE NORTHWEST CORNER OF SAID REMAINDER OF 134.041 ACRE TRACT A I) '1'H1'- EAST CORNER OIL SAID 2818 PLACE; THENCE: ALONG THE SOUTH LINE OF FM 2818 FOR 'ELIE FOLLOWLNG CALLS: N 83° 49' 00" E FOR A DISTANCE OF 302.72 FEET TO A CONCRETE RIGHT -OF -WAY MARKER FOUND; N 84° 44' 20" E FOR A DISTANCE 01? 1136.72 FEET TO A 5/8 INCA IRON ROD FOUND MARKING THE NORTHEAST CORNER 01? THIS HEREIN DESCRIBED TRACT AND THE NORIHWEST CORNIER OF A CALLED 4.365 ACRE TRACT AS DESCRIBED BY A DEED TO THE CITY OF COLLEGE STATION RECORDED IN VOLUME 8735, PAGE 231 OF THE OFFICIAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS, FOR REFERENCE A CONCRETE RIGHT -OF -WAY MARKER FOUND BEARS: N 84° 44' 20" E FOR A DISTANCE OF 89.87 FEET; THENCE: ALONG THE COMMON LINE OF SAID REMAINDER OF 134.041 ACRE TRACT AND SAID 4.365 ACRE TRACT FOR THE FOLLOWING CALLS: • • S 11° 48' 11" E FOR A DISTANCE OF 502.09 FEAT TO A 5/8 INCH IRON ROD FOUND; S 78° 11' 49" W FOR A DISTANCE OF 17.00 FEET TO A 5/8 INCH IRON ROD FOUND; S 11° 48' 11" E FOR A DISTANCE OF 155.74 FEET TO A 5/8 INCH IRON ROD FOUND ON TITE COMMON LINE OF SAID 134.041 ACRE TRACT AND THE REMAINDER OF A CALLED 10.7466 ACRE TRACT AS DESCRIBED BY A DEED TO THE CITY OF COLLEGE STATION RECORDED IN VOLUME 6950, PAGE 42 OF THE OFFICLAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS; THENCE: S 42° 32' 57" W ALONG THE COMMON LINE OF SAID REIMLAINDER OF 134.041 ACRE TRACT AND REMAINDER OF 10.7466 ACRE TRACT FOR A DISTANCE OF 196.78 FEET TO A 5/8 INCH IRON ROD FOUND MARKING THE NORTH CORNER OF SAID 4.99 ACRE TRACT; THENCE: S 10° 56' 18" E ALONG THE COMMON LINE OF SAID 4.99 ACRE TRACT AND SAID REJYIALNDER OF 10.7466 ACRE TRACT FOR A DISTANCE OF 439.12 FEET TO A 5/8 INCH IRON ROD FOUND ON THE COMMON LINE OF SAID 4.99 ACRE TRACT AND THE REMAINDER OF A. CALLED 5.000 ACRE TRACT AS DESCRIBED BY A DEED TO THE CITY OF COLLEGE STATION RECORDED IN VOLUME 8222, PAGE 226 OF THE OFFICIAL PUBLIC RECORDS OF BRAZOS COUNTY, TEXAS, SAID IRON ROD FOUND MARKING THE BEGINNING OF A CLOCKWISE CURVE HAVING A RADIUS OF 575.00 FEET; THENCE: ALONG THE COMMON LINE OF SAID 4.99 ACRE TRACT AND SAID REMAINDER OF 5.000 ACRE TRACT AND ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 32° 27' 42" FOR AN ARC DISTANCE OF 325.77 FEET (CHORD BEARS: S 05° 17' 33" W — 321.43 FEET) TO A 5/8 INCH IRON ROD FOUND ON THE NORTHWEST LINE OF DOWLING ROAD MARKING t'HE ENDING POINT OF SAID CURVE; THENCE: S 43° 01' 08" W ALONG THE NORTHWEST LINE OF DOWLING ROAD FOR A DISTANCE OF 94.15 FEET TO A 5/8 INCH IRON ROD FOUND MARKING THE SOUTH CORNER OF SAID 4.99 ACRE TRACT; THENCE: S 43° 01' 19" W CONTINUING ALONG THE NORTHWEST LINE OF DOWLING ROAD FOR A DISTANCE OF 1262.08 FEET TO A 1 /3 INCH IRON ROD FOUND MARIUNG AN ANGLE POINT IN SAID LINE; THENCE: S 62° 44' 18" W CONTINUING ALONG THE NORTHWEST LINE OF DOWLING ROAD FOR A. DISTANCE OF 736.81 FEET TO THE POINT OF BEGINNING CONTAINING 120.76 ACRES OF LAND, MORE OR LESS. NOTE: The Company is prohibited from insuring the area or quantity of the Iand described herein. Any statement in the above legal description of the area or quantity of land is not a representation that such area or quantity is correct, but is made only for informational and /or identification purposes and does not override Item 2 of Schedule B hereof • • OWNER'S POLICY OF TITLE INSURANCE Issued by Stewart Title Guaranty Company SCHEDULE B File No.: 0728577DD Policy No. 0 -5951- 000055139 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: LL delete-this-exception): 2. ,d< ^ � i" .. :.. , - . ! . , shortages in area . ...... , • _ _ , • ... - - .. ... , .. .... ef-imprevements. 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 2009, 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 the deed dated December 15, 2008, filed for record on December 17, 2008, under Brazos County Clerk's File No. 01016446, from TLS Properties, Ltd., a Texas limited partnership, to Capstone - CS, LLC, an Alabama limited liability company, securing the payment of a note in the amount of $6,394,000.00, payable to the order of TLS Properties, Ltd., a Texas limited partnership additionally secured by Deed of Trust of even date therewith to J. William Earle, Trustee, said Deed of Trust filed for record on December 17, 2008, under Brazos County Clerk's File No. 01016447. b. Easement dated April 17, 1979, from Travis L. Smith, III, et al to the City of Bryan, and recorded in Volume 430, Page 46 of the Deed Records of Brazos County, Texas, and as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593. c. Easement dated August 23, 1979, from John Douglas Smith, et al to the City of Bryan, and recorded in FORM T -1: Owner's Policy of Title Insurance Page 3 • Continuation of Schedule B Policy No. 0 -5951- 000055139 Volume 434, Page 435 of the Deed Records of Brazos County, Texas, and as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593. d. Easement as Awarded in Judgment dated June 30, 2003, from the City of College Station to TLS Properties, Ltd., et al, and recorded in Volume 5419, Page 110 of the Deed Records of Brazos County, Texas, and as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593. e. Easement dated January 7, 2004, from TLS Properties, Ltd. to the City of Bryan, dba Bryan Texas Utilities, and recorded in Volume 5812, Page 288 of the Official Records of Brazos County, Texas, and as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593. f. Easement dated July 25, 2005, from TLS Properties, Ltd. to the City of Bryan, dba Bryan Texas Utilities, and recorded in Volume 6849, Page 148 of the Official Records of Brazos County, Texas, and as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593. g. Easement dated June 4, 2008, from TLS Properties, Ltd. to the City of Bryan, dba Bryan Texas Utilities, and recorded in Volume 8633, Page 51 of the Official Records of Brazos County, Texas, and as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593. h. Easement dated January 7, 1972, from Sidney N. Smith, et al to Wellborn Water Supply Corporation, and recorded in Volume 303, Page 354 of the Deed Records of Brazos County, Texas, and as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593, as not plottable. The company hereby insures the Insured against loss or damage, if any, sustained by the Insured, which loss or damage results from the exercise or enforcement of any right of any holder of any right -of -way, right -of -entry or easement in the land (collectively, the "Easements ") to (a) force the relocation or removal of (i) existing improvements or (ii) improvements to be constructed in the future, to the extent construction of such improvements has already commenced (b) use or maintain the Easements in a manner that interferes with (i) existing improvements or (ii) improvements to be constructed in the future, to the extent construction of such improvements has already commenced or (c) any rights of any such holder to prohibit the right of access or ingress or egress to, from, across, upon, below or above, the portion of the land which is subject to such Easements. Further, without limiting the generality of the foregoing, the Company shall provide defense to the Insured in accordance with the terms of this Policy if suit is brought against the Insured for the exercise or enforcement of said rights. Easement dated October 7, 1947, from T.L. Smith, Jr. to Sinclair Refining Company, and recorded in Volume 132, Page 127 of the Deed Records of Brazos County, Texas, and as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593, as not plottable. The company hereby insures the Insured against loss or damage, if any, sustained by the Insured, which loss or damage results from the exercise or enforcement of any right of any holder of any right -of -way, right -of -entry or easement in the land (collectively, the "Easements ") to (a) force the relocation or removal of (i) existing improvements or (ii) improvements to be constructed in the future, to the extent construction of such improvements has already commenced (b) use or maintain the Easements in a manner that interferes with (i) existing improvements or (ii) improvements to be constructed in the future, to the extent construction of such improvements has already commenced or (c) any rights of any such holder to prohibit the right of access or ingress or egress to, from, across, upon, below or above, the portion of the land which is subject to such Easements. Further, without limiting the generality of the foregoing, the Company shall provide defense to the Insured in accordance with the terms of this Policy if suit is brought against the Insured for the exercise or enforcement of said rights. j. Easement dated July 24, 1984, from J.D. Smith, et al to the City of Bryan, and recorded in Volume 709, Page 509 of the Official Records of Brazos County, Texas, and as referenced by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593. The company hereby insures the Insured against loss or damage, if any, sustained by the Insured, which loss or damage results from the exercise or enforcement of any right of any holder of any right-of-way, right -of -entry or easement in the land (collectively, the "Easements ") to (a) force the relocation or removal of (i) existing improvements or (ii) improvements to be . constructed in the future, to the extent construction of such improvements has already commenced (b) use or maintain the Easements in a manner that interferes with (i) existing improvements or (ii) improvements to be constructed in the future, to the extent construction of such improvements has already commenced or (c) any FORM T -1: Owner's Policy of Title Insurance Page 4 • • Continuation of Schedule B Policy No. 0- 5951 - 000055139 rights of any such holder to prohibit the right of access or ingress or egress to, from, across, upon, below or above, the portion of the land which is subject to such Easements. Further, without limiting the generality of the foregoing, the Company shall provide defense to the Insured in accordance with the terms of this Policy if suit is brought against the Insured for the exercise or enforcement of said rights. k. Easement dated April 22, 1987, from John Douglas Smith, et al to Wellborn Water Supply Corporation, and recorded in Volume 1114, Page 347 of the Official Records of Brazos County, Texas, and as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593. Easement dated July 15, 1997, from John D. Smith, et al to Ferguson- Burleson Gas Gathering System, and recorded in Volume 2788, Page 175 of the Official Records of Brazos County, Texas, and as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593, as not plottable. The company hereby insures the Insured against loss or damage, if any, sustained by the Insured, which loss or damage results from the exercise or enforcement of any right of any holder of any right -of -way, right -of- entry or easement in the land (collectively, the "Easements ") to (a) force the relocation or removal of (i) existing improvements or (ii) improvements to be constructed in the future, to the extent construction of such improvements has already commenced (b) use or maintain the Easements in a manner that interferes with (i) existing improvements or (ii) improvements to be constructed in the future, to the extent construction of such improvements has already commenced or (c) any rights of any such holder to prohibit the right of access or ingress or egress to, from, across, upon, below or above, the portion of the land which is subject to such Easements. Further, without limiting the generality of the foregoing, the Company shall provide defense to the Insured in accordance with the terms of this Policy if suit is brought against the Insured for the exercise or enforcement of said rights. in. • Easement dated August 11, 2004, from TLS Properties, Ltd. to the City of Bryan, dba Bryan Texas Utilities, and recorded in Volume 6248, Page 78 of the Official Records of Brazos County, Texas, and as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593. n. Royalty Deed dated April 8, 1946, from T.L. Smith, Jr. to William Bukowski, et al, and recorded in Volume 123, Page 583 of the Deed Records of Brazos County, Texas. TITLE to said interest has NOT been investigated subsequent to the date of the aforesaid instrument. o. Royalty Deed dated March 30, 1984, from Rosa Bukowski to W.N. Adkins, and recorded in Volume 670, Page 171 of the Official Records of Brazos County, Texas. TITLE to said interest has NOT been investigated subsequent to the date of the aforesaid instrument. p. Royalty Deed dated June 17, 1985, from Annie Bukuowski to H.B. Young, and recorded in Volume 805, Page 67 of the Official Records of Brazos County, Texas. TITLE to said interest has NOT been investigated subsequent to the date of the aforesaid instrument. q. Subject to the terms, conditions and stipulations contained in Oil and Gas Lease dated September 24, 1993, from John Douglas Smith, et al, as Lessor to Apache Corporation, as Lessee, and recorded in Volume 2019, Page 294 of the Official Records of Brazos County, Texas. TITLE to said interest has NOT been investigated subsequent to the date of the aforesaid instrument. r. Mineral Reservation reserved in Deed dated May 14, 2008, from the County of Brazos, Texas to TLP Properties, Ltd., and recorded in Volume 8591, Page 273 of the Official Records of Brazos County, Texas. TITLE to said interest has NOT been investigated subsequent to the date of the aforesaid instrument. s. Subject to the terms, conditions and stipulations contained in Memorandum of Oil and Gas Lease dated April 7, 1984, from The County of Brazos, Texas, as Lessor to Threshold Energy, Inc., as Lessee, and recorded in Volume 695, Page 152 of the Official Records of Brazos County, Texas. TITLE to said interest has NOT been investigated subsequent to the date of the aforesaid instrument. t. Pipeline placed on risers located along the Southwesterly side of subject property as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593. FORM T -1: Owner's Policy of Title Insurance Page 5 • • Continuation of Schedule B Policy No. 0 -5951- 000055139 u. Pipeline as flagged on the ground extending from the north property line in a southerly direction as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593. v. Oilfield Pad Site and shown on a Proposed 4.36 acre surface waiver tract enclosed by a chain link fence along the northerly side of subject property as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593. w. Encroachment and /or overlap of fences along the Northerly and Easterly side of subject property as reflected by survey prepared August 27, 2008, by Brad Kerr, R.P.L.S. No. 4502, under Job No. 08 -593. x. Section 14 of the conditions and stipulations of this Policy is hereby deleted. Countersigned .. ;Pi • • le Houston By 1 10111 ._ �_�O o ' d Counter Signature FORM T -1: Owner's Policy of Title Insurance Page 6 • • ENDORSEMENT Attached to Policy No. 0- 5951 - 000055139 Issued by STEWART TITLE GUARANTY COMPANY The Company insures against loss or damage sustained by the Insured by reason of: 1. The existence, at Date of Policy, of any of the following unless expressly excepted in Schedule B: a. Present violations on the Land of any enforceable covenants, conditions, or restrictions, or any existing improvements on the Land that violate any building setback lines shown on a plat of subdivision recorded or filed in the Public Records. b. Any instrument referred to in Schedule B as containing covenants, conditions, or restrictions on the Land that, in addition, (i) establishes an easement on the Land, (ii) provides for an option to purchase, a right of first refusal, or the prior approval of a future purchaser or occupant, or (iii) provides a right of reentry, possibility of reverter, or right of forfeiture because of violations on the Land of any enforceable covenants, conditions, or restrictions. c. Any encroachment of existing improvements located on the Land onto adjoining land or any encroachment onto the Land of existing improvements located on adjoining land. d. Any encroachment of existing improvements located on the Land onto that portion of the Land subject to any easement excepted in Schedule B. e. Any notices of violation of covenants, conditions, or restrictions relating to environmental protection recorded or filed in the Public Records. 2. Damage to existing buildings that are located on or encroach upon that portion of the Land subject to any easement excepted in Schedule B, which damage results from the exercise of the right to maintain the easement for the purpose for which it was granted or reserved. 3. Damage to improvements (excluding lawns, shrubbery, or trees) located on the Land on or after Date of Policy resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of minerals excepted from the description of the Land or excepted in Schedule B. 4. Any final court order or judgment requiring the removal from any land adjoining the Land of any encroachment, other than fences, landscaping, or driveways, excepted in Schedule B. 5. Any final court order or judgment denying the right to maintain any existing building on the Land because of any violation of covenants, conditions, or restrictions or building setback lines shown on a plat of subdivision recorded or filed in the Public Records. Form T -19.1: Restrictions, Encroachments, Minerals Endorsement - Owner Policy . • Wherever in this endorsement the words "covenants, conditions, or restrictions" appear, they do not include the terms, covenants, conditions, or limitations contained in an instrument creating a lease. As used in paragraphs 1.a. and 5, the words "covenants, conditions, or restrictions" do not include any covenants, conditions, or restrictions (a) relating to obligations of any type to perform maintenance, repair, or remediation on the Land, or (b) pertaining to environmental protection of any kind or nature, including hazardous or toxic matters, conditions, or substances, except to the extent that a notice of a violation or alleged violation affecting the Land has been recorded or filed in the Public Records at Date of Policy and is not excepted in Schedule B. This endorsement is issued as part of the policy. Except as it expressly states, it does not (1) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. STEWART T - - - ' : = NTY COMPANY / / u thorized Counter Signature Form T -19.1: Restrictions, Encroachments, Minerals Endorsement - Owner Policy • • • W �+* ..a L .�° . ,-- . • _ - sue �- * s l d — Z .ff ! i�tQ i Is aC►:4� �► �! ` s„s' �!.q�t+t► ► . ' r.`.► �C► +} d n i► s�► � ± �s► �^► �7t ` «"►. p►.�\ • • J eTA 7J .s: sl, 1 Z z 0 D 10 � _ m '.. t;.�'w. m z -g 0 r- 0 v,V i m n z ; i . ��lo I,;, C Q p ', r. `py "� z y a v n L Z/ � y.e:. e •• �..e.e !:,,►.�. •a• • • « .�s.. .a..os .�..q• �• b• a ! _ Is 's .G. ► .6i .KP ► .i*. r± �► 4 .�,: t:Pi .4. .; . Cs.its CS .g. 0• K *Z7 • * .. . v +i ��ii¢r�• ____i I ! 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