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ST9902-ES101005 AI lance TITLE C O M PAN Y October 5, 2010 The City of Coppell F 1/c 255 Parkway Blvd / 04) Coppell, TX 75019 -9478 .1 ^ ter RE: .465 of an acre portion of Lot 14A, Biock A of Cottonwood EstatesCoppeii, TX 75019 ) Thank you for the opportunity to provide our services in your real estate transaction. We look forward to serving you in future transactions. Enclosed is /are the following: ® Owner Title Policy No. 5019648- 0003950e ❑ Other:: If you have any questions, please do not hesitate to contact us. Donna Magers Policy Manager dmagers @allegiancetitle.com 3301 W. Eldorado Pkwy. #100; McKinney, TX 75070 Phone: 972 -562 -9559 Fax: 972 -562 -0161 [�^^* Title Owner's Policy of Title Insurance (T -1) First American _.." t�le SSUED BY First American Title Insurance Company POLICY NUMBER Owner Policy 5019648- 0003950e 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 address shown in Section 18 of the Conditions. COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation (the "Company ") insures, as of Date of Policy and, to the extent stated in Covered Risks 9 and 10, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of: 1. Title being vested other than as stated in Schedule A. 2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from: (a) A defect in the Title caused by: (i) forgery, fraud, undue influence, duress, incompetency, incapacity or impersonation; (ii) failure of any person or Entity to have authorized a transfer or conveyance; (iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized or delivered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified, expired or otherwise invalid power of attorney; (vi) a document not properly filed, recorded or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (vii) a defective judicial or administrative proceeding. (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid. (c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term "encroachment" includes encroachments of existing improvements located on the Land onto adjoining land, and 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. 3. Lack of good and indefeasible Title. 4. No right of access to and from the Land. (Covered Risks Continued on Page 2) In Witness Whereof, First American Title Insurance Company has caused its corporate name to be hereunto affixed by its authorized officers as of Date of Policy shown in Schedule A. First American Title Insurance Company .01LE g• • � �f • A RP OR, •. y� •■ � Dennis J. Gilmore c ; President C • o • \ .. T j 1 N d 1968 •• ' *e4 c1FORN° . * Timothy Kemp ........... Secretary (This Policy is valid only when Schedules A and B are attached) This Jacket was created electronically and constitutes an original document Form 5019648 (2/1/10) Page 1 of 6 TX T -1 Owner's Policy of Title Insurance (Rev. 2 -1 -10) - Texas Policy # : 5019648- 0003950e COVERED RISKS (Continued) 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: (i) to be timely, or (ii) to impart notice of its existence to a purchaser for value or to 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 wit 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 Claimant and not disclosed in writing to the Company by the policy and the Company will not pay loss or damage, costs, attorneys' Insured Claimant prior to the date the Insured Claimant fees or expenses that arise by reason of: became an Insured under this policy; 1. (a) Any law, ordinance, permit, or governmental regulation (c) resulting in no loss or damage to the Insured Claimant; (including those relating to building and zoning) restricting, (d) attaching or created subsequent to Date of Policy (however, regulating, prohibiting or relating to: this does not modify or limit the coverage provided under (i) the occupancy, use, or enjoyment of the Land; Covered Risk 9 and 10); or (ii) the character, dimensions or location of any improvement (e) resulting in loss or damage that would not have been erected on the Land; sustained if the Insured Claimant had paid value for the (iii) subdivision of land; or Title. (iv) environmental protection; 4. Any claim, by reason of the operation of federal bankruptcy, state or the effect of any violation of these laws, ordinances or insolvency, or similar creditors' rights laws, that the transaction governmental regulations. This Exclusion 1(a) does not modify or vesting the Title as shown in Schedule A, is: limit the coverage provided under Covered Risk 5. (a) a fraudulent conveyance or fraudulent transfer; or (b) Any governmental police power. This Exclusion 1(b) does not (b) a preferential transfer for any reason not stated in Covered modify or limit the coverage provided under Covered Risk 6. Risk 9 of this policy. 2. Rights of eminent domain. This Exclusion does not modify or limit 5. Any lien on the Title for real estate taxes or assessments the coverage provided under Covered Risk 7 or 8. imposed by governmental authority and created or attaching 3. Defects, liens, encumbrances, adverse claims or other matters: between Date of Policy and the date of recording of the deed or (a) created, suffered, assumed or agreed to by the Insured other instrument of transfer in the Public Records that vests Title as shown in Schedule A. Claimant; 6. The refusal of any person to purchase, lease or lend money on (b) not Known to the Company, not recorded in the Public the estate or interest covered hereby in the land described in Records at Date of Policy, but Known to the Insured Schedule A because of Unmarketable Title. Form 5019648 (2/1/10) Page 2 of 6 TX T -1 Owner's Policy of Title Insurance (Rev. 2 -1 -10) - Texas Policy # : 5019648- 0003950e CONDITIONS 1. DEFINITION OF TERMS. (i) "Public Records ": records established under state statutes at The following terms when used in this policy mean: Date of Policy for the purpose of imparting constructive notice (a) "Amount of Insurance ": the amount stated in Schedule A, as of matters relating to real property to purchasers for value may be increased or decreased by endorsement to this policy, and without Knowledge. With respect to Covered Risk 5(d), increased by Section 8(b), or decreased by Sections 10 and 11 "Public Records" shall also include environmental protection of these Conditions. liens filed in the records of the clerk of the United States (b) "Date of Policy ": the date designated as "Date of Policy" in District Court for the district where the Land is located. Schedule A. (j) "Title ": the estate or interest described in Schedule A. (c) "Entity ": a corporation, partnership, trust, limited liability (k) "Unmarketable Title ": Title affected by an alleged or apparent company or other similar legal entity. matter that would permit a prospective purchaser or lessee of (d) "Insured ": the Insured named in Schedule A. the Title or lender on the Title to be released from the (i) The term "Insured" also includes: obligation to purchase, lease or lend if there is a contractual (A) successors to the Title of the Insured by operation of condition requiring the delivery of marketable title. law as distinguished from purchase, including heirs, 2. CONTINUATION OF INSURANCE. devisees, survivors, personal representatives or next The coverage of this policy shall continue in force as of Date of of kin; Policy in favor of an Insured, but only so long as the Insured retains (B) successors to an insured by dissolution, merger, an estate or interest in the Land, or holds an obiigation secured by a consolidation, distribution or reorganization; purchase money Mortgage given by a purchaser from the Insured, (C) successors to an Insured by its conversion to another or only so long as the Insured shall have liability by reason of kind of Entity; warranties in any transfer or conveyance of the Title. This policy (D) a grantee of an Insured under a deed delivered shall not continue in force in favor of any purchaser from the Insured without payment of actual valuable consideration of either (i) an estate or interest in the Land, or (ii) an obligation conveying the Title; secured by a purchase money Mortgage given to the Insured. (1) If the stock, shares, memberships, or other 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. equity interests of the grantee are wholly- The Insured shall notify the Company promptly in writing (i) in case owned by the named Insured, of any litigation as set forth in Section 5(a) below, or (ii) in case (2) If the grantee wholly owns the named Insured, Knowledge shall come to an Insured hereunder of any claim of title (3) If the grantee is wholly -owned by an affiliated or interest that is adverse to the Title, as insured, and that might Entity of the named Insured, provided the cause loss or damage for which the Company may be liable by affiliated Entity and the named Insured are virtue of this policy. If the Company is prejudiced by the failure of both wholly -owned by the same person or the Insured Claimant to provide prompt notice, the Company's Entity, or liability to the Insured Claimant under the policy shall be reduced to (4) If the grantee is a trustee or beneficiary of a the extent of the prejudice. trust created by a written instrument When, after the Date of the Policy, the Insured notifies the Company established by the Insured named in Schedule as required herein of a lien, encumbrance, adverse claim or other A for estate planning purposes. defect in Title insured by this policy that is not excluded or excepted (ii) With regard to (A), (B), (C) and (D) reserving, however, all from the coverage of this policy, the Company shall promptly rights and defenses as to any successor that the Company investigate the charge to determine whether the lien, encumbrance, would have had against any predecessor Insured. adverse claim or defect or other matter is valid and not barred by (e) "Insured Claimant ": an Insured claiming loss or damage. law or statute. The Company shall notify the Insured in writing, (f) "Knowledge" or "Known ": actual knowledge, not constructive within a reasonable time, of its determination as to the validity or knowledge or notice that may be imputed to an Insured by invalidity of the Insured's claim or charge under the policy. If the reason of the Public Records or any other records that impart Company concludes that the lien, encumbrance, adverse claim or constructive notice of matters affecting the Title. defect is not covered by this policy, or was otherwise addressed in (g) "Land ": the land described in Schedule A, and affixed the closing of the transaction in connection with which this policy improvements that by law constitute real property. The term was issued, the Company shall specifically advise the Insured of the "Land" does not include any property beyond the lines of the reasons for its determination. If the Company concludes that the area described in Schedule A, nor any right, title, interest, lien, encumbrance, adverse claim or defect is valid, the Company estate or easement in abutting streets, roads, avenues, alleys, shall take one of the following actions: (i) institute the necessary lanes, ways or waterways, but this does not modify or limit the proceedings to clear the lien, encumbrance, adverse claim or defect extent that a right of access to and from the Land is insured by from the Title as insured; (ii) indemnify the Insured as provided in this policy. this policy; (iii) upon payment of appropriate premium and charges (h) "Mortgage ": mortgage, deed of trust, trust deed, or other therefor, issue to the Insured Claimant or to a subsequent owner, security instrument, including one evidenced by electronic mortgagee or holder of the estate or interest in the Land insured by means authorized by law. this policy, a policy of title insurance without exception for the lien, Form 5019648 (2/1/10) Page 3 of 6 TX T -1 Owner's Policy of Title Insurance (Rev. 2 -1 -10) - Texas Policy # : 5019648- 0003950e CONDITIONS (Continued) encumbrance, adverse claim or defect, said policy to be in an obtaining witnesses, prosecuting or defending the action or amount equal to the current value of the Land or, if a mortgagee proceeding, or effecting settlement, and (ii) in any other lawful policy, the amount of the loan; (iv) indemnify another title insurance act that in the opinion of the Company may be necessary or company in connection with its issuance of a policy(ies) of title desirable to establish the Title or any other matter as insured. insurance without exception for the lien, encumbrance, adverse If the Company is prejudiced by the failure of the Insured to claim or defect; (v) secure a release or other document discharging furnish the required cooperation, the Company's obligations to the lien, encumbrance, adverse claim or defect; or (vi) undertake a the Insured under the policy shall terminate, including any combination of (i) through (v) herein. liability or obligation to defend, prosecute, or continue any 4. PROOF OF LOSS. litigation, with regard to the matter or matters requiring such In the event the Company is unable to determine the amount of loss cooperation. or damage, the Company may, at its option, require as a condition of (b) The Company may reasonably require the Insured Claimant to payment that the Insured Claimant furnish a signed proof of loss. submit to examination under oath by any authorized The proof of loss must describe the defect, lien, encumbrance or representative of the Company and to produce for other matter insured against by this policy that constitutes the basis examination, inspection and copying, at such reasonable times of loss or damage and shall state, to the extent possible, the basis of and places as may be designated by the authorized calculating the amount of the loss or damage. representative of the Company, all records, in whatever 5. DEFENSE AND PROSECUTION OF ACTIONS. medium maintained, including books, ledgers, checks, (a) Upon written request by the Insured, and subject to the options memoranda, correspondence, reports, e- mails, disks, tapes, contained in Sections 3 and 7 of these Conditions, the and videos whether bearing a date before or after Date of Company, at its own cost and without unreasonable delay, shall Policy, that reasonably pertain to the loss or damage. Further, provide for the defense of an Insured in litigation in which any if requested by any authorized representative of the Company, third party asserts a claim covered by this policy adverse to the the Insured Claimant shall grant its permission, in writing, for Insured. This obligation is limited to only those stated causes of any authorized representative of the Company to examine, action alleging matters insured against by this policy. The inspect and copy all of these records in the custody or control Company shall have the right to select counsel of its choice of a third party that reasonably pertain to the loss or damage. (subject to the right of the Insured to object for reasonable All information designated as confidential by the Insured cause) to represent the Insured as to those stated causes of Claimant provided to the Company pursuant to this Section action. It shall not be liable for and will not pay the fees of any shall not be disclosed to others unless, in the reasonable other counsel. The Company will not pay any fees, costs or judgment of the Company, it is necessary in the administration expenses incurred by the Insured in the defense of those of the claim. Failure of the Insured Claimant to submit for causes of action that allege matters not insured against by this examination under oath, produce any reasonably requested policy. information or grant permission to secure reasonably (b) The Company shall have the right, in addition to the options necessary information from third parties as required in this contained in Sections 3 and 7, at its own cost, to institute and subsection, unless prohibited by law or governmental prosecute any action or proceeding or to do any other act that in regulation, shall terminate any liability of the Company under its opinion may be necessary or desirable to establish the Title, this policy as to that claim. as insured, or to prevent or reduce loss or damage to the 7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; Insured. The Company may take any appropriate action under TERMINATION OF LIABILITY. the terms of this policy, whether or not it shall be liable to the In case of a claim under this policy, the Company shall have the Insured. The exercise of these rights shall not be an admission following additional options: of liability or waiver of any provision of this policy. If the (a) To Pay or Tender Payment of the Amount of Insurance. Company exercises its rights under this subsection, it must do To pay or tender payment of the Amount of Insurance under so diligently. this policy together with any costs, attorneys' fees and (c) Whenever the Company brings an action or asserts a defense expenses incurred by the Insured Claimant that were as required or permitted by this policy, the Company may authorized by the Company up to the time of payment or pursue the litigation to a final determination by a court of tender of payment and that the Company is obligated to pay. competent jurisdiction and it expressly reserves the right, in its Upon the exercise by the Company of this option, all liability sole discretion, to appeal from any adverse judgment or order. and obligations of the Company to the Insured under this 6. DUTY OF INSURED CLAIMANT TO COOPERATE. policy, other than to make the payment required in this (a) In all cases where this policy permits or requires the Company subsection, shall terminate, including any liability or obligation to prosecute or provide for the defense of any action or to defend, prosecute, or continue any litigation. proceeding and any appeals, the Insured shall secure to the (b) To Pay or Otherwise Settle With Parties Other than the Insured Company the right to so prosecute or provide defense in the or With the Insured Claimant. action or proceeding, including the right to use, at its option, the (i) To pay or otherwise settle with other parties for or in the name of the Insured for this purpose. Whenever requested by name of an Insured Claimant any claim insured against the Company, the Insured, at the Company's expense, shall under this policy. In addition, the Company will pay any give the Company all reasonable aid (1) in securing evidence, costs, attorneys' fees and expenses incurred by the Form 5019648 (2/1/10) Page 4 of 6 TX T -1 Owner's Policy of Title Insurance (Rev. 2 -1 -10) - Texas Policy # : 5019648- 0003950e CONDITIONS (Continued) Insured Claimant that were authorized by the Company up 11. LIABILITY NONCUMULATIVE. to the time of payment and that the Company is obligated to The Amount of Insurance shall be reduced by any amount the pay; or Company pays under any policy insuring a Mortgage to which (ii) To pay or otherwise settle with the Insured Claimant the exception is taken in Schedule B or to which the Insured has loss or damage provided for under this policy, together with agreed, assumed, or taken subject, or which is executed by an any costs, attorneys' fees, and expenses incurred by the Insured after Date of Policy and which is a charge or lien on the Insured Claimant that were authorized by the Company up Title, and the amount so paid shall be deemed a payment to the to the time of payment and that the Company is obligated to Insured under this policy. pay. Upon the exercise by the Company of either of the 12. PAYMENT OF LOSS. options provided for in subsections (b)(i) or (ii), the When liability and the extent of loss or damage have been Company's obligations to the Insured under this policy for definitely fixed in accordance with these Conditions, the the claimed loss or damage, other than the payments payment shall be made within 30 days. required to be made, shall terminate, including any liability 13. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT. or obligation to defend, prosecute, or continue any litigation. (a) Whenever the Company shall have settled and paid a claim 8. DETERMINATION AND EXTENT OF LIABILITY. under this policy, it shall be subrogated and entitled to the This policy is a contract of indemnity against actual monetary loss or rights of the Insured Claimant in the Title and all other rights damage sustained or incurred by the Insured Claimant who has and remedies in respect to the claim that the Insured Claimant suffered loss or damage by reason of matters insured against by this has against any person or property, to the extent of the policy. amount of any loss, costs, attorneys' fees, and expenses paid (a) The extent of liability of the Company for loss or damage under by the Company. If requested by the Company, the Insured this policy shall not exceed the lesser of: Claimant shall execute documents to evidence the transfer to (i) the Amount of Insurance; or the Company of these rights and remedies. The Insured (ii) the difference between the value of the Title as insured and Claimant shall permit the Company to sue, compromise, or the value of the Title subject to the risk insured against by settle in the name of the Insured Claimant and to use the this policy. name of the Insured Claimant in any transaction or litigation (b) If the Company pursues its rights under Section 3 or 5 and is involving these rights and remedies. unsuccessful in establishing the Title, as insured, If a payment on account of a claim does not fully cover the (i) the Amount of Insurance shall be increased by 10 %, and loss of the Insured Claimant, the Company shall defer the (H) the Insured Claimant shall have the right to have the loss or exercise of its right to recover until after the Insured Claimant damage determined either as of the date the claim was shall have recovered its loss. made by the Insured Claimant or as of the date it is settled (b) The Company's right of subrogation includes the rights of the and paid. Insured to indemnities, guaranties, other policies of insurance, (c) In addition to the extent of liability under (a) and (b), the or bonds, notwithstanding any terms or conditions contained in Company will also pay those costs, attorneys' fees, and those instruments that address subrogation rights. expenses incurred in accordance with Sections 5 and 7 of these 14. ARBITRATION. Conditions. Either the Company or the Insured may demand that the claim or 9. LIMITATION OF LIABILITY. controversy shall be submitted to arbitration pursuant to the Title (a) If the Company establishes the Title, or removes the alleged Insurance Arbitration Rules of the American Land Title Association defect, lien or encumbrance, or cures the lack of a right of access ( "Rules "). Except as provided in the Rules, there shall be no to or from the Land, all as insured, or takes action in accordance joinder or consolidation with claims or controversies of other with Section 3 or 7, in a reasonably diligent manner by any persons. Arbitrable matters may include, but are not limited to, any method, including litigation and the completion of any appeals, it controversy or claim between the Company and the Insured arising shall have fully performed its obligations with respect to that out of or relating to this policy, any service in connection with its matter and shall not be liable for any loss or damage caused to issuance or the breach of a policy provision, or to any other the Insured. controversy or claim arising out of the transaction giving rise to this (b) In the event of any litigation, including litigation by the Company policy. All arbitrable matters when the Amount of Insurance is or with the Company's consent, the Company shall have no $2,000,000 or less shall be arbitrated at the option of either the liability for loss or damage until there has been a final Company or the Insured, unless the Insured is an individual person determination by a court of competent jurisdiction, and (as distinguished from an Entity). All arbitrable matters when the disposition of all appeals, adverse to the Title, as insured. Amount of Insurance is in excess of $2,000,000 shall be arbitrated (c) The Company shall not be liable for loss or damage to the only when agreed to by both the Company and the Insured, unless Insured for liability voluntarily assumed by the Insured in settling the Insured is an individual person (as distinguished from an any claim or suit without the prior written consent of the Entity). Arbitration pursuant to this policy and under the Rules shall Company. be binding upon the parties. Judgment upon the award rendered 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF by the Arbitrator(s) may be entered in any court of competent LIABILITY. jurisdiction. All payments under this policy, except payments made for costs, 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE attorneys' fees, and expenses, shall reduce the Amount of Insurance CONTRACT. by the amount of the payment. (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. Form 5019648 (2/1/10) Page 5 of 6 TX T -1 Owner's Policy of Title Insurance (Rev. 2 -1 -10) - Texas Policy # : 5019648- 0003950e CONDITIONS (Continued) (b) Any claim of loss or damage that arises out of the status of the 17. CHOICE OF LAW; FORUM. Title or by any action asserting such claim, shall be restricted (a) Choice of Law: The Insured acknowledges the Company has to this policy. underwritten the risks covered by this policy and determined (c) Any amendment of or endorsement to this policy must be in the premium charged therefor in reliance upon the law writing and authenticated by an authorized person, or affecting interests in real property and applicable to the expressly incorporated by Schedule A of this policy. interpretation, rights, remedies or enforcement of policies of (d) Each endorsement to this policy issued at any time is made a title insurance of the jurisdiction where the Land is located. part of this policy and is subject to all of its terms and Therefore, the court or an arbitrator shall apply the law of provisions. Except as the endorsement expressly states, it the jurisdiction where the Land is located to determine the does not (i) modify any of the terms and provisions of the validity of claims against the Title that are adverse to the policy, (ii) modify any prior endorsement, (iii) extend the Date Insured, and in interpreting and enforcing the terms of this of Policy or (iv) increase the Amount of Insurance. Each policy. In neither case shall the court or arbitrator apply its Commitment, endorsement or other form, or provision in the conflicts of laws principles to determine the applicable law. Schedules to this policy that refers to a term defined in Section (b) Choice of Forum: Any litigation or other proceeding brought 1 of the Conditions shall be deemed to refer to the term by the Insured against the Company must be filed only in a regardless of whether the term is capitalized in the state or federal court within the United States of America or Commitment, endorsement or other form, or Schedule. Each its territories having appropriate jurisdiction. Commitment, endorsement or other form, or provision in the 18. NOTICES, WHERE SENT. Schedules that refers to the Conditions and Stipulations shall Any notice of claim and any other notice or statement in writing be deemed to refer to the Conditions of this policy. required to be given to the Company under this policy must be given 16. SEVERABILITY. to the Company at First American Title Insurance Company, Attn: In the event any provision of this policy, in whole or in part, is held Claims National Intake Center, 1 First American Way, Santa Ana, invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision or such part held to be invalid, California 92707. Phone: 888.632 -1642. and all other provisions shall remain in full force and effect. AtelEp, C First American Title Form 5019648 (2/1/10) Page 6 of 6 TX T -1 Owner's Policy of Title Insurance (Rev. 2 -1 -10) - Texas OWNER'S POLICY OF TITLE INSURANCE Issued by First American Title Insurance Company of Texas SCHEDULE A Name and Address of Title Insurance Company: FIRST AMERICAN TITLE INSURANCE COMPANY OF TEXAS 1500 S. Dairy Ashford, Suite 300, Houston, 77077 File No.: 0911182 -ALCP Policy No.: 5019648- 0003950e Address for Reference only: Coppell, TX 75019 Amount of Insurance: $162,212.00 Premium: $1,175.00 Date of Policy: August 11, 2010, at 11:56 am 1. Name of Insured: The City of Coppell, Texas, a municipal corporation 2. The estate or interest in the Land that is insured by this policy is: Easement 3. Title is insured as vested in: The City of Coppell, Texas, a municipal corporation 4. The Land referred to in this policy is described as follows: Being a 0.465 of an acre portion of Lot 14A, Block A, Cottonwood Estates, an addition to the City of Coppell, Dallas County, Texas, as shown by plat recorded in Volume 79246, Page 2471, Plat Records, Dallas County, Texas, and being more particularly described by metes and bounds as follows: BEGINNING at a 5/8 inch iron rod found for the southwest corner of said Lot 14A, same being on the north right -of- way line of Sandy Lake Road (a variable width right -of -way) and on the east right -of -way line of Cottonwood Drive (a 60 feet wide right -of -way), same being also the beginning of a curve to the left, having a radius of 431.59 feet, and a chord that bears North 08 deg. 27 min. 46 sec. West, 28.92 feet; THENCE along said curve to the left, with said east right -of -way line, an arc length of 28.93 feet to a 5/8 inch capped iron rod stamped "TNP" set for corner; THENCE East, over and across said Lot 14A, a distance of 738.83 feet to a 5/8 inch capped iron rod stamped "TNP" set on the east line of same; THENCE South 00 deg. 10 min. 08 sec. East, with the east line of said Lot 14A, passing a 1/2 inch iron rod at 0.44 feet, a total distance of 26.43 feet to a 1/2 inch iron rod found for the southeast corner of same, and on said north right -of- way line; THENCE South 89 deg. 49 min. 48 sec. West with said north right -of -way line, a distance of 734.66 feet to the POINT OF BEGINNING and containing 0.465 of an acre of land, more or less Note: The Company is prohibited from insuring the area or quantity of the land described herein. Any statement in the above legal description of the area or quantity of land is not a representation that such 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. FORM T -1: Owner's Policy of Title Insurance Page 1 OWNER'S POLICY OF TITLE INSURANCE Issued by First American Title Insurance Company of Texas SCHEDULE B File No.: 0911182 -ALCP Policy No.: 5019648- 0003950e EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of the terms and conditions of leases and easements, if any, shown in Schedule A, and the following matters: 1. The following restrictive covenants of record itemized below (the Company must either insert specific recording data or delete this exception): See Item 6 (a) below. 2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements. 3. Homestead or community property or survivorship rights, if any, of any spouse of any Insured. 4. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities, a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or b. to lands beyond the line of harbor or bulkhead lines as established or changed by any government, or c. to filled -in lands, or artificial islands, or d. to statutory water rights, including riparian rights, or e. to the area extending from the line of mean low tide to the line of vegetation, or the right of access to that area or easement along and across that area. 5. Standby fees, taxes and assessments by any taxing authority for the year 2010, and subsequent years; and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year. 6. The following matters and all terms of the documents creating or offering evidence of the matters (The Company must insert matters or delete this exception.): a. Certain documents recorded in the public records may have language restricting land ownership or use because of race, color, creed, national origin, religion, disabilities, handicap, sex, or familial status (called herein "Personal Restrictions "). Federal law prohibits enforcement of such personal restrictions and even limits the ability of the title company to report or show them. To the extent such personal restrictions are contained in any documents listed as an exception to title in this insuring form, such personal restrictions or covenants are omitted from the exception. If the Company or its title insurance agent have provided copies of documents containing such personal restrictions or covenants, we are simply providing a true copy of the recorded documents and do not publish, state, or imply such personal restrictions or covenants are enforceable. Volume 81082, Page 137, Deed Records, Dallas County, Texas. b. Rights of parties in possession. FORM T -1: Owner's Policy of Title Insurance Page 2 Continuation of Schedule B Policy No. 5019648- 0003950e c. All, leases, grants, exceptions or reservations of coal, lignite, oil, gas and other minerals, together with all rights, privileges, and immunities relating thereto, appearing in the Public Records whether listed in Schedule B or not. There may be leases, grants, exceptions or reservations of mineral interest that are not listed. d. Any and all easements, building lines, and conditions, covenants, and restrictions as set forth in plat recorded under Volume 79246, Page 2471 of the Map Records of Dallas County, Texas. Co tersigned • _fiance • Com a iry By Authorized Counter Signature FORM T -1: Owner's Policy of Title Insurance Page 3 1 IMPORTANT NOTICE AVISO IMPORTANTE To obtain information or make a complaint: Para obtener informacion o para someter una queja: 2 You may contact your agent at 214 - 373 -3500. Puede comunicarse con su agente al 214 -373- 3500. 3 You may call First American Title Insurance Company of Texas's toll -free telephone number Usted puede Ilamar al numero de telefono gratis for information or to make a complaint at: de First American Title Insurance Company of Texas para informacion o para someter una queja al: 1- 800 - 854 -3643 1- 800 - 854 -3643 4 You may also write to First American Title Usted tambien puede escribir a First American Insurance Company of Texas at: Title Insurance Company of Texas al: 1 First American Way 1 First American Way Santa Ana, CA 92707 Santa Ana, CA 92707 5 You may contact the Texas Department of Puede comunicarse con el Departamento de Insurance to obtain information on companies, Seguros de Texas para obtener informacion coverages, rights or complaints at: acerca de companias, coberturas, derechos o quejas al: 1- 800 - 252 -3439 1- 800 - 252 -3439 6 You may write the Texas Department of Puede escribir al Departamento de Seguros de Insurance: Texas: P.O. Box 149104 P.O. Box 149104 Austin, TX 78714 -9104 Austin, TX 78714 -9104 Fax: (512) 475 -1771 Fax: (512) 475 -1771 Web: http: / /www.tdi.state.tx.us Web: http: / /www.tdi.state.tx.us E -mail: ConsumerProtection @tdi.state.tx.us E -mail: ConsumerProtection @tdi.state.tx.us 7 PREMIUM OR CLAIM DISPUTES: DISPUTAS SOBRE PRIMAS 0 RECLAMOS: Should you have a dispute concerning your Si tiene una disputa concerniente a su prima o a premium or about a claim you should contact the un reclamo, debe comunicarse con el agente o agent or the company first. If the dispute is not la compania primero. Si no se resuelve la resolved, you may contact the Texas disputa, puede entonces comunicarse con el Department of Insurance. departamento (TDI). 8 ATTACH THIS NOTICE TO YOUR POLICY: UNA ESTE AVISO A SU POLIZA: Este aviso This notice is for information only and does not es solo para proposito de informacion y no se become a part or condition of the attached convierte en parte o condicion del documento document. adjunto. Ai kgia nce TITLE COMPANY PRIVACY POLICY NOTICE Purpose Title V of the Gramm - Leach - Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates from sharing nonpublic personal information about you with a nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of Allegiance Title Company. Types of Information We may collect non - public personal information about you from the following sources: • Information we receive from you on applications, forms and in other communications to us whether in writing, in person, by telephone or any other means; • Information about your transaction secured from our files, from our affiliates, or from any other source; • Information we receive from a consumer reporting agency; and • Information we receive from any other party involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. Use of Information We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliated third parties as necessary for us to provide the product or service you have requested or as permitted by law. Additionally, we may store such information indefinitely, including the period after which the customer relationship has ceased. This information may also be disclosed to the following types of nonaffiliated companies that perform marketing services on our behalf or with whom we have joint marketing agreements: • Financial service providers such as companies engaged in banking, consumer finance, securities, and insurance; and • Non - financial companies such as envelope stuffers and other fulfillment service providers. Security We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide our products or services to you. Allegiance Title Company maintains physical, electronic, and procedural safeguards that comply with federal regulations in order to guard your nonpublic personal information. Confidentiality We will use our best efforts to make sure no unauthorized person has access to any of your information. We do not disclose any nonpublic personal information about you with anyone for any purpose that is not specifically permitted by law.