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R-99-12-09-18A1 - 12/9/1999AgAllitie cA11 ROBERT A STLUKA JR Mayor A TEST City of Round Rock Texas RESOLUTION NO R 99 12 09 18A1 WHEREAS the City of Round Rock desires to purchase approximately 175 acres of land and WHEREAS Beverly Johnson Gordon the owner of the property desires to sell the property to the City of Round Rock Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK TEXAS That the Mayor is hereby authorized and directed to execute on behalf of the City an Unimproved Property Contract with Beverly Johnson Gordon for the purchase of the above described property a copy of said Unimproved Property Contract being attached hereto and incorporated herein for all purposes The City Council hereby finds and declares that written notice of the date hour place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed considered and formally acted upon all as required by the Open Meetings Act Chapter 551 Texas Government Code as amended and the Act RESOLVED this 9th day of December 1999 ANNE LAND City Secretary K WROOcs RESOLUTI R912oA1 1B ec UNIMPROVED PROPERTY CONTRACT 1 PARTIES Beverly Johnson Gordon Seller agrees to sell and convey to City of Round Rock Buyer and Buyer agrees to buy from Seller the property described below 2 PROPERTY 175 acres as described in Document 9835986 Deed Records Williamson County Texas owned by Beverly Johnson Gordon as shown on attached Exhibit A referred to as the Property The Property is not subject to mandatory membership m an owners association The TREC Addendum For Property Subject To Mandatory Membership In An Owners Association is not attached 3 CONTRACT SALES PRICE A Cash portion of Sales Price payable by Buyer at closing 70 00000 B Sum of financing described below NA C Sales Price Sum of A and B 70 00000 4 FINANCING Not Applicable 5 EARNEST MONEY Buyer shall deposit 1000000 Earnest Money with Longhorn Title Company at Roundrock Texas as Escrow Agent upon execution of this contract by both parties If Buyer fails to deposit the Earnest Money as required by this contract Buyer will be in default 6 TITLE POLICY AND SURVEY A TITLE POLICY Seller shall furnish to Buyer at Sellers expense an owner policy of title insurance the Title Policy issued by Longhorn Title Company the Title Company m the amount of the Sales Price dated at or after closing insuring Buyer against loss under the provisions of the CWWorkCBI1 Gordon KRAlwpd Page 1 of 10 Title Policy subject to the promulgated exclusions including existing building and zoning ordinances and the following exceptions 1 5 CAA WorkCB111 Gordon K RR Iwpd Restrictive covenants common to the platted subdivision in which the Property is located 2 The standard printed exception for standby fees taxes and assessments 3 Liens created as part of the financing described in Paragraph 4 4 Utility easements created by the dedication deed or plat of the subdivision in which the Property is located Reservations or exceptions otherwise permitted by this contract or as may be approved by Buyer in writing 6 The standard printed exception as to discrepancies conflicts shortages in area or boundary lines encroachments or protrusions or overlapping improvements The standard printed exception as to marital rights The standard printed exception as to waters tidelands beaches streams and related matters Within 20 days after the Title Company receives a copy of this contract Seller shall furnish to Buyer a commitment for Title Insurance the Commitment and at Buyers expense legible copies of restrictive covenants and documents evidencing exceptions in the Commitment other than the standard printed exceptions Seller authorizes the Title Company to mail or hand deliver the Commitment and related documents to Buyer at Buyers address shown below If the Commitment is not delivered to Page 2 of 10 Buyer within the specified time the time for delivery shall be automatically extended up to 15 days B SURVEY None Required Buyer will have 7 days after the receipt of the latter of the Commitment or survey to object in writing to matters disclosed in the Commitment or survey Buyers failure to object under Paragraph 6 within the time allowed will constitute a waiver of Buyers right to object except that the requirements in Schedule C of the Commitment will not be deemed to have been waived Seller shall cure the timely objections of Buyer or any third party lender within 20 days from the date Seller receives the objections and the Closing Date will be extended as necessary If objections are not cured by the extended Closing Date this contract will terminate and the earnest money will be refunded to Buyer unless Buyer elects to waive the objections NOTICE TO SELLER AND BUYER 1 Buyer is advised to have an abstract of title covering the Property examined by an attorney of Buyers selection or Buyer should be furnished with or obtain a Title Policy If a Title Policy is furnished the Commitment should be promptly reviewed by an attorney of Buyers choice due to the time limitations on Buyers right to object 2 If the Property is situated in a utility or other statutorily created district providing water sewer drainage or flood control facilities and services Chapter 49 of the Texas Water Code requires Seller to deliver and Buyer to sign the statutory notice relating to the tax rate bonded indebtedness or standby fee of the district prior to final execution of this contract 3 4 Buyer is advised that the presence of wetlands toxic substances including asbestos and wastes or other environmental hazards or the presence of a CAA WorkCB1IGordo K RRIwpd If the property abuts the tidally influenced waters of the state Section 33135 Texas Natural Resources Code requires a notice regarding coastal area property to be included in the contract An addendum either promulgated by TREC or required by the parties should be used Page 3 of 10 threatened or endangered species or its habitat may affect Buyers intended use of the Property If Buyer is concerned about these matters an addendum either promulgated by TREC or required by the parties should be used 5 Unless expressly prohibited m writing by the parties Seller may continue to show the Property for sale and to receive negotiate and accept backup offers 7 PROPERTY CONDITION As a material part of the consideration for this Agreement Seller and Purchaser agree that Purchaser is taking the Property AS IS with any and all latent and patent defects and that there is no warranty by Seller that the Property is fit for a particular purpose Purchaser acknowledges that it is not relying upon any representations statements assertions or non assertions by the seller with respect to the Property conditions but is relying solely upon its examination of the Property Purchaser takes the Property under the express understanding there are no express or implied warranties except for limited warranties of title set forth in the closing documents Provisions of this Section shall survive the Closing 8 BROKERS REPRESENTATION AND FEES All obligations of the parties for payment of brokers fees are contained in separate written agreements 3 0 2041 9 CLOSING The closing of the sale will be on or before ee Aber 1 1999 or within 7 days after objections to matters disclosed in the Commitment or by the survey have been cured whichever date is later the Closing Date If financing or assumption approval has been obtained pursuant to Paragraph 4 the Closing Date will be extended up to 15 days if necessary to comply with lenders closing requirements for example appraisal survey insurance policies lender required repairs closing documents If either party fails to close this sale by the Closing Date the non defaulting party will be entitled to exercise the remedies contained in Paragraph 15 At closing Seller shall furnish tax statements or certificates showing no delinquent taxes and a general warranty deed conveying good and indefeasible title showing no additional exceptions to those permitted in Paragraph 6 CAA Workcsv1Gordon Kxx1wpd Page 4 of 10 10 POSSESSION Seller shall deliver possession of the Property to Buyer at closing and funding x3r 11 SPECIAL PROVISIONS M7Y The CITY OF ROUN ROCK agrees to cooperate with Seller to affect a Section 1031 Tax Exchange pursuant to IRS Regulations 12 SETTLEMENT AND OTHER EXPENSES A The following expenses must be paid at or prior to closing CAA WorkC611 I Gordon K RRIwpd Appraisal fees will be paid by N A The total of loan discount fees may not exceed N A of the loan of which Seller shall pay NA and Buyer shall pay the remainder The total of any buydown fees may not exceed NA which will be paid by NA 3 Sellers Expenses Releases of existing liens including prepayment penalties and recording fees release of Sellers loan liability tax statements or certificates preparation of deed one half of escrow fee and other expenses stipulated to be paid by Seller under other provisions of this contract 4 Buyers Expenses Loan application origination and commitment fees loan assumption costs preparation and recording of deed of trust to secure assumption lender required expenses incident to new loans including preparation of loan documents recording fees tax service and research fees warehouse or underwriting fees copies of restrictions and easements amortization schedule premiums for mortgagee title policies and endorsements required by lender credit reports photos required premiums for flood and hazard insurance required reserve deposit for insurance premiums and ad valorem taxes interest on all monthly installment payment notes from date of disbursements to one 1 month prior to dates of first monthly payments customary Program Loan costs for Buyer one half of escrow fee and other expenses stipulated to be paid by Buyer under other provisions of this contract Page 5 of 10 B If any expense exceeds an amount expressly stated in this contract for such expense to be paid by a party that party may terminate this contract unless the other party agrees to pay such excess In no event will Buyer pay charges and fees expressly prohibited by governmental loan program regulations 13 PROBATIONS AND ROLLBACK TAXES A PRORATIONS Taxes for the current year interest maintenance fees assessments dues and rents will be prorated through the Closing Date If taxes for the current year vary from the amount prorated at closing the parties shall adjust the prorations when tax statements for the current year are available If a loan is assumed and the lender maintains an escrow account the escrow account must be transferred to Buyer without any deficiency Buyer shall reimburse Seller for the amount in the transferred account Buyer shall pay the premium for a new insurance policy If taxes are not paid at or prior to closing Buyer will be obligated to pay taxes for the current year B ROLLBACK TAXES If this sale or Buyers use of the Property after closing results in the assessment of additional taxes penalties or interest Assessmentsfor periods prior to closing the Assessments will be the obligation of Buyer If Sellers change m use of the Property prior to closing or denial of a special use valuation on the Property claimed by Seller results in Assessments for periods prior to closing the Assessments will be the obligation of Seller Obligations imposed by this paragraph will survive closing 14 CASUALTY LOSS NA 15 DEFAULT If Buyer fails to comply with this contract Buyer will be in default and Seller may either a enforce specific performance seek such other relief as may be provided by law or both or b terminate this contract and receive the Earnest Money as liquidated damages thereby releasing both parties from this contract If due to factors beyond Sellers control Seller fails within the time allowed to make any non casualty repairs or deliver the Commitment Buyer may either a extend the time for performance up to 15 days and the Closing Date will be extended as necessary or b terminate this contract as the sole remedy and receive the Earnest Money If Seller fails to comply with this C1A WorkCBI1 Gordon K RRIwpd Page 6 of 10 contract for any other reason Seller will be in default and Buyer may either aenforce specific performance seek such other relief as may be provided by law or both or b terminate this contract and receive the Earnest Money thereby releasing both parties from this contract 16 DISPUTE RESOLUTION It is the policy of the State of Texas to encourage the peaceable resolution of disputes through alternative dispute resolution procedures The parties are encouraged to use an addendum approved by TREC to submit to mediation disputes which cannot be resolved in good faith through informal discussion 17 ATTORNEYS FEES The prevailing party in any legal proceeding brought under or with respect to the transaction described in this contract is entitled to recover from the non prevailing party all costs of such proceeding and reasonable attomeys fees 18 ESCROW The Earnest Money is deposited with Escrow Agent with the understanding that Escrow Agent is not a a party to this contract and does not have any liability for the performance or non performance of any party to this contract b liable for interest on the Earnest Money and c liable for any loss of earnest money caused by the failure of any financial institution in which the earnest money has been deposited unless the financial institution is acting as escrow agent At closing the earnest money must be applied first to any cash down payment then to Buyers closing costs and any excess refunded to Buyer If both parties make written demand for the earnest money escrow agent may require payment of unpaid expenses incurred on behalf of the parties and a written release of liability of escrow agent from all parties If one party makes written demand for the earnest money escrow agent shall give notice of the demand by providing to the other party a copy of the demand If escrow agent does not receive written objection to the demand from the other party within 30 days after notice to the other party escrow agent may disburse the eamest money to the party making demand reduced by the amount of unpaid expenses incurred on behalf of the party receiving the earnest money and escrow agent may pay the same to the creditors If escrow agent complies with the provisions of this paragraph each party hereby releases escrow agent from all adverse claims related to the disbursal of the earnest money Escrow agents notice to the other party will be effective when deposited in the US Mail postage CAA WorkCB111 Gordon K RRlwpd Page 7 of 10 prepaid certified mail return receipt requested addressed to the other party at such partys address shown below Notice of objection to the demand will be deemed effective upon receipt by escrow agent 19 REPRESENTATIONS Seller represents that as of the Closing Date a there will be no liens assessments or security interests against the Property which will not be satisfied out of the sales proceeds unless securing payment of any loans assumed by Buyer and b assumed loans will not be in default If any representation in this contract is untrue on the Closing Date this contract may be terminated by Buyer and the earnest money will be refunded to Buyer All representations contained in this contract will survive closing 20 FEDERAL TAX REQUIREMENT If Seller is a foreign person as defined by applicable law or if Seller fails to deliver an affidavit that Seller is not a foreign person then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms IRS regulations require filing written reports if cash in excess of specified amounts is received in the transaction 21 AGREEMENT OF PARTIES This contract contains the entire agreement of the parties and cannot be changed except by their written agreement Addenda which are a part for this contract are list Agreement for Mediation 22 CONSULT YOUR ATTORNEY This is intended to be legally binding READ IT CAREFULLY If you do not understand the effect of this contract consult your attorney BEFORE signing BUYERS ATTORNEY AND ADDRESS Charles Crossfield 309 East Main Round Rock Texas 78664 SELLERS ATTORNEY AND ADDRESS Charles E Brown 818 W 10th Street Austin Texas 78701 C1A WorkCBU 1 Gordon K RRlwpd Page 8 of 10 23 NOTICES All notices from one party to the other party must be in writing and are effective when mailed to or hand delivered at or transmitted by facsimile machine as follows EXECUTED in multiple originals on November 1999 THE EFFECTIVE DATE ADDRESS AND TELEPHONE 309 East Main Round Rock Texas 78664 Telephone 512 255 8877 Facsimile 512 BUYER City of Round Rock CAA WorkCB11 Gordon KRR1wpd Page 9 of 10 Robe A Stluka Jr M or SELLER ADDRESS AND TELEPHONE 9168 County Road 110 Georgetown Texas 78626 Telephone 512 255 3354 Facsimile 512 246 6631 Receipt of Contract and 10000 Earnest Money in the form of is acknowledged Date 1999 ESCROW AGENTS ADDRESS PREPARED IN THE OFFICE OF Charles E Brown PC 818 W 10th Street Austin Texas 78701 CAA WorkC11Gordon K RR1wpd RECEIPT Longhorn Title Company Escrow Agent BY Round Rock Texas Page 10 of 10 AGREEMENT FOR MEDIATION ADDENDUM TO UNIMPROVED PROPERTY CONTRACT BETWEEN THE UNDERSIGNED PARTIES CONCERNING THE SALE OF 175 ACRES AS DESCRIBED IN DOCUMENT 9835986 DEED RECORDS WILLIAMSON COUNTY TEXAS OWNED BY BEVERLY JOHNSON GORDON AS SHOWN ON ATTACHED EXHIBIT A REFERRED TO AS THE PROPERTY The parties to the contract agree to negotiate in good faith in an effort to resolve any dispute related to the contract that may arise between the parties or between a party If the dispute cannot be resolved by negotiation the dispute shall be submitted to mediation before resort to litigation If the need for mediation arises a mutually acceptable mediator shall be chosen by the parties to the dispute who shall share the cost of mediation services equally NOTE Mediation is a voluntary dispute resolution process in which the parties to the dispute meet with an impartial person called a mediator who would help to resolve the dispute informally and confidentially Mediators facilitate the resolution of disputes but cannot impose binding decisions The parties to the dispute must agree before any settlement is binding BUYER City s t und Roc A Stluka J CAA WorkCBU I Gordon MA RRwpd Page 1 of 1 Mayor SELLER Beverly Jo ordon DATE December 3 1999 SUBJECT City Council Meeting December 9 1999 ITEM 18A1 Consider a resolution authorizing the Mayor to execute a Real Estate contract with Beverly Johnson Gordon for the purchase of 175 acres of land Staff Resource Person Bob Bennett City Manager yovizovt Voiniaamy ey4Lfi I April 13 2000 City of Round Rock 309 East Main Round Rock TX 78664 RE GF99023414 In reference to the above transaction enclosed please find your Owners Title Policy and recorded Warranty Deed We now have a complete and permanent file on your property and can give you prompt and efficient service if you should sell refinance or seek additional financing for improvements It was a pleasure working with you We at Longhorn Title Company Inc hope you will consider us for all your future title insurance needs We appreciate your business Sincerely coAL Carla Samarripas Policy Department Enclosures 80I Main Street Georgetown Texas 78626 512 869 2661 512 930 4283 Fax 9304194 309 N Main Street Taylor Texas 76574 512 365 8686 Fax 365 8030 105 E Main Street Round Rock Texas 78664 512 244 6661 Fax 244 0477 RECEIVED APR 1 7 2000 LARGE ENOUGH TO SERVE SMALL ENOUGH TO CARE 2955 Dawn Driue Suite C Georgetown Texas 78628 512 930 1414 Fax 930 1601 Date February q 2000 Grantor Beverly Johnson Gordon Grantors Mailing Address including county Beverly Johnson Gordon 9163 County Road 110 Georgetown Texas 78626 Williamson County Grantee City of Round Rock 309 East Main Round Rock Texas 78664 Williamson County CASH WARRANTY DEED Grantees Mailing Address including county Consideration TEN AND NO 100 DOLLARS and other good and valuable consideration Property including any improvements All of that certain 1698 acre tract of land out of the Willis Donoho Survey Abstract No 173 in Williamson County Texas being more particularly described by metes and bounds in exhibit A attached hereto Reservations From and Exceptions to Conveyance and Warranty Easements rights ofway and prescriptive rights whether of record or not all presently recorded instruments other than liens and conveyances that affect the property taxes for the current year the payment of which Grantee assumes and CA W orkCB12Gordon Deed 16 ac 3 Page 1 of 3 000009011 5 x7341 subsequent assessments for the current and prior years due to change in land usage ownership or both the payment of which Grantee assumes Grantor for the consideration receipt of which is acknowledged and subject to the reservations from and exceptions to conveyance and warranty grants sells and conveys to Grantee the property together with all and singular the rights and appurtenances thereto in any wise belonging to have and hold it to Grantee Grantees heirs executor administrators successors or assigns forever Grantor binds Grantor and Grantors heirs executors administrators and successors to warrant and forever defend all and singular the property to Grantee and Grantees heirs executors administrators successors and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof except as to the reservations from and exceptions to conveyance and warranty When the context requires singular nouns and pronouns include the plural STATE OF TEXAS COUNTY OF WILLIAMSON This instrument was acknowledged before me on 2000 by Beverly Johnson Gordon CA WorkCE 2 Gordon Deed 16 ac3 Beverly Jo on ordon ACKNOWLEDGMENT PuzmAti d t Notary Public State of Texas Page 2 of 3 Grantee accepts the Property AS IS with any and all latent and patent defects and understands that there is no warranty by Grantor that the Property is fit for a particular purpose Grantee acknowledges that Grantee is not relying upon any representation statement or other assertion with respect to the Property condition but is relying on Grantees examination of the Property Grantee takes the Property under the express understanding that there are no express or implied warranties except for limited warranties of title as specified in this Deed Grantee City of Round Rock i S I i signature 1ee1A St1 1 a Jr 9 o STATE OF TEXAS COUNTY OF WILLIAMSON This instrument was acknowledged before me on rEaeilla2 y 0 2000 by Robert A Stluka Jr Mayor of the City of Round Rock Texas on behalf of said City of Round Rock T CHRISTINE R MARTINEZ MY COMMISSION EXPIRES IAugust52001 PREPARED IN THE OFFICE OF Charles E Brown PC 818 W 10th Street Austin Texas 78701 CA WorkC132 Gordon Deed 16 ac3 ACCEPTANCE BY GRANTEE ACKNOWLEDGMENT Notary Public State of Texas Page 3 of 3 Exhibit Page of Field Notes BEING 1698 ACRES 73942 SF OF LAND MORE OR LESS OUT OF AND A PART OF THE WILLIS DONAHO SURVEY IN WILLIAMSON COUNTY TEXAS SAME BEING A PORTION OF THE TRACT CONVEYED TO BEVERLY JOHNSON GORDON BY DEED FILED FOR RECORD ON JUNE 30 1998 RECORDED IN DOCUMENT 9835986 OF THE OFFICIAL RECORDS OF WILLIAMSON COUNTY TEXAS SAID 1698 ACRE TRACT OF LAND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS BEGINNING at a 12 inch iron pin found in the south line of County Road 113 same being the northwest corner of the tract conveyed to Beverly Johnson Gordon by deed recorded in Document 9835986 of the Official Records of Williamson County Texas and a corner in the north line of the tract conveyed to TRJ Nelson Partnership by deed recorded in Document 9610394 of the Official Records of Williamson County Texas for the Point of Beginning and the northwest corner of the herein described tract of land 1 THENCE North 87 1026 East a distance of 23787 feet with the south line of County Road 113 and the north line of said Gordon tract to a point in the existing west line of County Road 122 same being the northeast corner of said Gordon tract for the northeast corner of the herein described tract of land 2 THENCE South 02 5834 East a distance of 31085 feet with the existing west line of County Road 122 and the east line of said Gordon tract to a 12 inch iron pin found at the southeast corner of said Gordon tract same being a corner in the east line of said TRJ Nelson Partnership tract for the southeast corner of the herein described tract of land 3 THENCE South 87 0126 West a distance of 23787 feet with the south line of said Gordon tract and a northerly line of said TRJ Nelson Partnership tract to point at the southwest corner of said Gordon tract for the southwest corner of the herein described tract of land 4 THENCE North 02 5834 West a distance of 31085 feet with the west line of said Gordon tract and an easterly line of said TRJ Nelson Partnership tract to the Point of Beginning and containing an area of 1698 acres of land more or less CP Eduardo O Mendez Registered Professional Land Surveyor 5010 Martinez Wright Mendez Inc 1106 Clayton Lane Suite 400W Austin Texas 78723 512 453 0767 Bearing Basis Texas State Plane Central NAD 83 Grid factor 099988 2300Date RETURN TO s projectsnaoa punts coraon vac ooc Angriktvap lA r Aux February 3 2000 Page 1 Beverly Johnson Gordon to City of Round Rock 7171 I RLUUP OFFICIAL PUBLIC RECORDS tr 02 14 2000 0402 PM 2000009011 STRICKLAND 1700 NANCY E RISTER COUNTY CLERK WILLIAMSON COUNTY TEXAS GF 99023414 The real property described below which you are about to purchase is located in the BRUSHY CREEK WATER CONTROL IMPROVEMENT District The district has taxing authority separate from any other taxing authority and may subject to voter approval issue an unlimited amount of bonds and levy an unlimited rate in payment of such bonds As of this date the rate of taxes levied by the district on real property located in the district is 0000 on each 10000 of assessed valuation If the district has not levied taxes the most recent projected rate of debt service tax as of this date is 0000 on each 10000 of assessed valuation This total amount of bonds which has been approved by the voters and which have been or may at this date be issued is 0000 and the aggregate initial principal amounts of all bonds issued for one or more of the specified facilities of the district and payable in whole or in part from property taxes is 0000 The district has the authority to adopt and impose a standby fee on property in the district that has water sewer sanitary or drainage facilities or other services available but not connected and which does not have a house building or other improvement located thereon and does not substantially utilize the utility capacity available on the property The district may exercise the authority without holding an election on the matter As of this date the amount of the standby fee is 0000 An unpaid standby fee is a personal obligation of the person that owned the property at the time of imposition and is secured by a lien on the property Any person may request a certification from the district stating the amount if any of unpaid standby fees on a tract of property in the district The purpose of this district is to provide water sewer drainage or flood control facilities and services within the district through the issuance of bonds payable in whole or in part from property taxes The cost of these facilities is not included in the purchase price of your property and these utility facilities are owned or to be owned by the district The legal description of the property which you are acquiring is as follows ALL THAT CERTAIN 1698 ACRE TRACT OF LAND OUT OF THE WILLIS DONOHO SURVEY ABSTRACT NO 173 IN WILLIAMSON COUNTY TEXAS DATE 7 4 DATE State of Texas County of Willi This instrument was JOHNSON GORDON After Record s PENNIE CHANDLER rvoto wo m Sure ii I W apim LONGHORN TITLE COMPANY INC 105 E MAIN ROUND ROCK TEXAS 78664 NOTICE TO PURCHASER 200 009012 2 Pgs SELLERBE a i JOHNSON GORDRO Purchaser is advised that the information shown on this form is subject to change by the district at any time The district routinely establishes tax rates during the months of September through December of each year effective for the year in which the tax rates are approved by the district Purchaser is advised to contact the district to determine the status of any current or proposed changes to the informatin shown on this form The undersigned purchaser hereby acknowledges receipt of the foregoing notice at or prior to execution of a binding contract for the purchase of real property DER RT A FTLUKA JR MAYOR CITY OF UND ROCK TEXAS State of Texas County of Williamson This instrument was acknowledged before me on this 0 ay of FEBRUARY2000 by ROBERT A STLUKA JR MAYOR CITY XAS TART PUBLIC STATE OF TEXAS acknowledged before me on this May of FEBRUARY2000 by BEVERLY 1 1141444 L NOTARY PUBLIC STATE OF TEXAS RETURN TO A pys IrllairBa 02 14 2000 0402 PM 2000009012 STRICKLAND 1100 NANCY E RISTER COUNTY CLERK WILLIAMSON COUNTY TEXAS lr II s ENEbyERiJi OFFICIAL PUBLIC RECORDS 8 APPORTIONMENT lithe land described in Schedule A consists of two or more parcels that are not used as a single site and a loss is established affecting one or more of the parcels but not all the loss shall be computed and settled on a pro rata basis as if the amount of insurance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole exclusive of any improvements made subsequent to Date of Policy unless a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to this policy 9 LIMITATION OF LIABILITY a If the Company establishes the title or removes the alleged defect lien or encumbrance or cures the lack of a right of access to or from the land all is insured or takes action in accordance with Section 3 or Section 6 in a reasonably diligent manner by any method including litigation and the completion of any appeals therefrom it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby b In the event of any litigation including litigation by the Company or with the Companys consent the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction and disposition of all appeals therefrom adverse to the title as insured c The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company 10 REDUCTION OF INSURANCE REDUCTION OR TERMINATION OF LIABILITY All payments under this policy except payments made for costs attor neys fees and expenses shall reduce the amount of the insurance pro tanto 11LIABILITY NONCUMULATIVE It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed assumed or taken subject or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A and the amount so paid shall be deemed a payment under this policy to the insured owner 12PAYMENT OF LOSS a No payment shall be made without producing this policy for endorse ment of the payment unless the policy has been lost or destroyed in which case proof of loss or destruction shall be famished to the satisfaction of the Company b When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations the loss or damage shall be payable within 30 days thereafter 13SUBROGATION UPON PAYMENT OR SETTLEMENT a The Companys Right of Subrogation Whenever the Company shall have settled and paid a claim under this policy all right of subrogation shall vest in the Company unaffected by any act of the insured claimant The Company shall be subrogated to and be entitled to all rights and remedies that the insured claimant would have had against any person or property in respect to the claim had this policy not been issued If requested by the Company the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation The insured claimant shall permit the Company to sue compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies If a payment on account of a claim does not fully cover the loss of the insured claimant the Company shall be subrogated to these rights and remedies in the proportion which the Companys payment bears to the whole amount of the loss If loss should result from any act of the insured claimant as stated above that act shall not void this policy but the Company in that event shall be required to pay only that part of any losses insured against this policy that shall exceed the amount if any lost to the Company by reason of the impairment by the insured claimant of the Companys right of subrogation b The Companys Rights Against Non Insured Obligors The Companys right of subrogation against non insured obligors shall exist and shall include without limitation the rights of the insured to indemnities guaranties other policies of insurance or bonds notwithstanding any terms or conditions contained in those instruments that provide for subrogation rights by reason of this policy 14 ARBITRATION Unless prohibited by applicable law or unless this arbitration section is deleted by specific provision in Schedule B of this policy either the Company or the insured may demand arbitration pursuant to the Title Arbitration Rules or the American Arbitration Association Arbitrable matters may include but are not limited to any controversy or claim between the Company and the Insured arising out of or relating to this policy any service of the Company in connection with the issuance or the breach of a policy provision or other obligation All arbitrable matters when the Amount of Insurance is 1000000 or less SHALL BE arbitrated at the request of either the Company or the Insured unless the Insured is an individual person as distinguished from a corporation trust partnership association or other legal entity All arbi trable matters when the Amount of Insurance is in excess of 1000000 shall be arbitrated only when agreed to by both the Company and the insured Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or at the option of the insured the Rules in effect at Date of Policy shall be binding upon the parties The award may include attomeys fees only if the laws of the state in which the land is located permit a court to award attorneys fees to a prevailing party Judgement upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules A copy of the Rules may be obtained from the Company upon request 15 LIABILITY LIMITED TO THIS POLICY POLICY ENTIRE CONTRACT a This policy together with all endorsements if any attached hereto by the Company is the entire policy and contract between the insured and the Company In interpreting any provision of this policy this policy shall be construed as a whole b Any claim of loss or damage whether or not based on negligence and which arises out of the status of the title to the estate or interest covered hereby or by any action asserting such claim shall be restricted to this policy c No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President a Vice President the Secretary an Assistant Secretary or validating officer or authorized signatory of the Company 16 SEVERABILITY In the event any provision of the policy is held invalid or unenforceable under applicable law the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect 17 NOTICES WHERE SENT All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at Chicago Title Insurance Company Claims Department 171 North Clark Chicago Illinois 60601 COMPLAINT NOTICE Should any dispute arise about your premium or about a claim that you have filed contact the agent or write to the Company that issued the policy If the problem is not resolved you also may write the Texas Department of Insurance PO Box 149091 Austin TX 78714 9091 Fax No 512 475 1771 This notice of complaint procedure is for information only and does not become a part or condition of this policy FOR INFORMATION OR TO MAKE A COMPLAINT CALL 1 800 442 4303 the Company concludes that the lien encumbrance adverse claim or defect is valid the Company shall take one of the following actions 1 institute the necessary proceedings to clear the lien encumbrance adverse claim or defect from the title to the estate as insured ii indemnify the insured as provided in this policy iii upon payment of appropriate premium and charges therefor issue to the insured claimant or to a subsequent owner mortgagee or holder of the estate or interest in the land insured by this policy a policy of title insurance without exception for the lien encumbrance adverse claim or defect said policy to be in an amount equal to the current value of the property or if a mortgagee policy the amount of the loan iv indemnify another title insurance company in connection with its issuance of a policyies of title insurance without exception for the lien encumbrance adverse claim or defect v secure a release or other document discharging the lien encumbrance adverse claim or defect or vi undertake a combination of i through v herein 4 DEFENSE AND PROSECUTION OF ACTIONS DUTY OF INSURED CLAIMANT TO COOPERATE a Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations the Company at its own cost and without unreasonable delay shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or interest as insured but only as to those stated causes of action alleging a defect lien or encumbrance or other matter insured against this policy The Company shall have the right to select counsel of its choice subject to the right of the insured to object for reasonable cause to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel The Company will not pay any fees costs or expenses incurred by the insured in the defense of those causes of action that allege matters not insured against by this policy b The Company shall have the right at its own cost to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the title to the estate or interest as insured or to prevent or reduce loss or damage to the insured The Company may take any appropriate action under the terms of this policy whether or not it shall be liable hereunder and shall not thereby concede liability or waive any provision of this policy If the Company shall exercise its rights under this paragraph it shall do so diligently c Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right in its sole discretion to appeal from any adverse judgement or order d In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding the insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding and all appeals therein and permit the Company to use at its option the name of the insured for this purpose Whenever requested by the Company the insured at the Companys expense shall give the Company all reasonable aid i in any action or proceeding securing evidence obtaining witnesses prosecuting or defending the action or pro ceeding or effecting settlement and ii in any other lawful act that in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest as insured If the Company is prejudiced by the failure of the insured to furnish the required cooperation the Companys obligations to the insured under the policy shall terminate including any liability or obligation to defend prosecute or continue any litigation with regard to the matter or matters requiring such cooperation 5 PROOF OF LOSS OR DAMAGE In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 91 days after the insured claimant shall ascertain the facts giving rise to the loss or damage The proof of loss or damage shall describe the defect in or lien or encumbrance on the title or other matter insured against by this policy that constitutes the basis of loss or damage and shall state to the extent possible the basis of calculating the amount of the loss or damage If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage the Companys obligations to the insured under the policy shall terminate including any liability or obligation to defend prosecute or continue any litigation with regard to the matter or matters requiring such proof of loss or damage In addition the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination inspection and copying at such reasonable times and places as may be designated by any authorized representative of the Company all records books ledgers checks correspondence and memo randa whether bearing a date before or after Date of Policy which reasonably pertain to the loss or damage Further if requested by any authorized representative of the Company the insured claimant shall grant its permis sion in writing for any authorized representative of the Company to examine inspect and copy all records books ledgers checks correspondence and memoranda in the custody or control of a third party which reasonably pertain to the loss or damage All information designated as confidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless in the reasonable judgement of the Company it is necessary in the administration of the claim Failure of the insured claimant to submit for examination under oath produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph shall terminate any liability of the Company under this policy as to that claim 6 OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS TERMINATION OF LIABILITY In case of a claim under this policy the Company shall have the following additional options a To Pay or Tender Payment of the Amount of Insurance To pay or tender payment of the amount of insurance under this policy together with any costs attorneys fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment or tender of payment and which the Company is obligated to pay Upon the exercise by the Company of this option all liability and obligations to the insured under this policy other than to make the payment required shall tenninate including any liability or obligation to defend prosecute or continue any litigation and the policy shall be surrendered to the Company for cancellation b To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant i To pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy together with any costs attorneys fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay or ii To pay or otherwise settle with the insured claimant the loss or damage provided for under this policy together with any costs attorneys fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay Upon the exercise by the Company of either of the options provided for in paragraphs bi or ii the Companys obligations to the insured under this policy for the claimed loss or damage other than the payments required to be made shall terminate including any liability or obligation to defend pros ecute or continue any litigation 7 DETERMINATION EXTENT OF LIABILITY AND COINSURANCE This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described a The liability of the Company under this policy shall not exceed the least of i the Amount of Insurance stated in Schedule A or ii the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect lien or encumbrance insured against by this policy at the date the insured Claimant is required to furnish to Company a proof of loss or damage in accordance with Section 5 of these Conditions and Stipulations b In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land whichever is less or if subsequent to the Date of Policy an improvement is erected on the land which increases the value of the insured estate or interest by at least 20 percent over the Amount of Insurance stated in Schedule A then this Policy is subject to the following i where no subsequent improvement has been made as to any partial loss the Company shall only pay the loss pro rata in the proportion that the amount of insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy or ii where a subsequent improvement has been made as to any partial loss the Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement The provisions of this paragraph shall not apply to costs attomeys fees and expenses for which the Company is liable under this policy and shall only apply to that portion of any loss which exceeds in the aggregate 10 percent of the Amount of Insurance stated in Schedule A c The Company will pay only those costs attorneys fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations ADDED PAGE Policy Number Owners Polley Number 4402781007833 Rights of parties in possession POLICY INSERT Added Page Reorder Form No 3237D Rev 289 Loan Schedule continued B EXCEPTIONS FROM COVERAGE 6 CONTINUED The rights of Brushy Creek Water Control and Improvement District No 1 to levy taxes and issue bonds All visible and apparent easements and all underground easements the existence of which may arise by unrecorded grant or by use OWNERS FORM Owner Policy Number 4402781007833 GF Number 99023414B Item 1 is hereby deleted SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage and the Company will not pay costs attorneys fees or expenses that arise by reason of the terms and conditions of the leases or easements insured if any shown in Schedule A and the following matters 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 or any spouse of any insured 4 Any titles or rights asserted by anyone including but not limited to persons the public corporations governments or other entities a to tidelands or lands comprising the shores or beds of navigable or perennial rivers and streams lakes bays gulfs or oceans or b to lands beyond the line of the harbor or bulkhead lines as established or changed by any government or c to filled in lands or 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 7000 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 1113 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 Easement dated July 23 1940 to Texas Power and Light Company recorded in Volume 304 Page 247 Deed Records Williamson County Texas Countersigned Autho ignatory LONGHOR TITLE COMPANY INC SCHEDULE B Owners Policy Texas Form T 1 Reorder Form No 20670 Rev 1299 Schedule B of this Policy consists of pages Continued on next page IEduardo0Mendez Exhibit Page of Field Notes Registered Professional Land Surveyor 5010 Martinez Wright Mendez Inc 1106 Clayton Lane Suite 400W Austin Texas 78723 512 4530767 Bearing Basis Texas State Plane Central NAD 83 Grid factor 099988 s 7ac00C 1 to Date February 3 2000 Page 1 Beverly Johnson Gordon to City of Round Rock BEING 1698 ACRES 73942 SF OF LAND MORE OR LESS OUT OF AND A PART OF THE WILLIS DONAHO SURVEY IN WILLIAMSON COUNTY TEXAS SAME BEING A PORTION OF THE TRACT CONVEYED TO BEVERLY JOHNSON GORDON BY DEED FILED FOR RECORD ON JUNE 30 1998 RECORDED IN DOCUMENT 9835986 OF THE OFFICIAL RECORDS OF WILLIAMSON COUNTY TEXAS SAID 1698 ACRE TRACT OF LAND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS BEGINNING at a 12 inch iron pin found in the south line of County Road 113 same being the northwest corner of the tract conveyed to Beverly Johnson Gordon by deed recorded in Document 9835986 of the Official Records of Williamson County Texas and a corner in the north line of the tract conveyed to TRJ Nelson Partnership by deed recorded in Document 9610394 of the Official Records of Williamson County Texas for the Point of Beginning and the northwest corner of the herein described tract of land 1 THENCE North 87 1026 East a distance of 23787 feet with the south line of County Road 113 and the north line of said Gordon tract to a point in the existing west line of County Road 122 same being the northeast corner of said Gordon tract for the northeast corner of the herein described tract of land 2 THENCE South 02 East a distance of 31085 feet with the existing west line of County Road 122 and the east line of said Gordon tract to a 12 inch iron pin found at the southeast corner of said Gordon tract same being a corner in the east line of said TRJ Nelson Partnership tract for the southeast corner of the herein described tract of land 3 THENCE South 87 0126 West a distance of 23787 feet with the south line of said Gordon tract and a northerly line of said TRJ Nelson Partnership tract to point at the southwest corner of said Gordon tract for the southwest corner of the herein described tract of land 4 THENCE North 02 5834 West a distance of 31085 feet with the west line of said Gordon tract and an easterly line of said TRJ Nelson Partnership tract to the Point of Beginning and containing an area of 1698 acres of land more or less GF NUMBER 1 Name of Insured CITY OF ROUND ROCK SCHEDULE A Owners Policy Texas Form Ti Reorder Form No 2088D Rev 193 POLICY NUMBER SCHEDULE A DATE OF POLICY AMOUNT OF INSURANCE GF99023414 13 4402781007833 3 Feb 14 2000 AT402PM 4 7000000 2 The estate or interest in the land that is covered by this policy is Fee Simple 3 Title to the estate or interest in the land is insured as vested in CITY OF ROUND ROCK 4 The land referred to in this policy is described as follows All that certain 1698 acre tract of land out of the Willis Donoho Survey Abstract No 173 in Williamson County Texas being more particularly described by metes and bounds in exhibit A attached hereto This Policy valid only if Schedule B is attached The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage costs attorneys fees or expenses which arise by reason of I a Any law ordinance or governmental regulation including but not limited to building and zoning laws ordinances or regulations restricting regulating prohibiting or relating to i the occupancy use or enjoyment of the land ii the character dimensions or location of any improvement now or hereafter erected on the land iii a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part or iv environmental protection or the effect of any violation of these laws ordinances or govemmental regulations except to the extent that a notice of the enforcement thereof or a notice of a defect lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy b Any governmental police power not excluded by a above except to the extent that a notice of the exercise thereof or a notice of a defect lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy 2 Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy but not excluding from coverage any taking that has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge EXCLUSIONS FROM COVERAGE 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 CONDITIONS AND STIPULATIONS 1 DEFINITION OF TERMS The following terms when used in this policy mean a insured the insured named in Schedule A and subject to any rights or defenses the Company would have had against the named insured those who succeed to the interest of the named insured by operation of law as distinguished from purchase including but not limited to heirs distribu tees devices survivors personal representatives next of kin or corporate partner ship or fiduciary successors and specifically without limitation the follow ing i the successors in interest to a corporation resulting from merger or consolidation or the distribution of the assets of the corporation upon partial or complete liquidation ii the partnership successors in interest to a general or limited partnership which dissolves but does not terminate iii the successors in interest to a general or limited partnership resulting from the distribution of the assets of the general or limited partner ship upon partial or complete liquidation iv the successors in interest to a joint venture resulting from the distribution of the assets of the joint venture upon partial or complete liquidation v the successor or substitute trustees of a trustee named in a written trust instrument or vi the successors in interest to a trustee or trust resulting from the distribution of all or part of the assets of the trust to the beneficiaries thereof b insured claimant an insured claiming loss or damage c knowledge or known actual knowledge not constructive knowl edge or notice that may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart construc tive notice of matters affecting the land d land the land described or referred to in Schedule A and improvements affixed thereto that by law constitute real property The term land does not include any property beyond the lines of the area described or referred to in Schedule A nor any right title interest estate or easement in abutting streets roads avenues alleys lanes ways or waterways but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy e mortgage mortgage deed of trust trust deed or other security instrument f public records records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge With respect to Section I ajv of the Exclusions From Coverage public records also shall of Policy but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy c resulting in no loss or damage to the insured claimant d attaching or created subsequent to Date of Policy e resulting in loss or damage that would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy 4 The refusal of any person to purchase lease or lend money on the estate or interest covered hereby in the land described in Schedule A because of unmarketability of the title 5 Any claim which arises out of the transaction vesting in the person named in paragraph 3 of Schedule A the estate or interest insured by this policy by reason of the operation of federal bankruptcy state insolvency or other state or federal creditors rights laws that is based on either i the transaction creating the estate or interest of the insured by this Policy being deemed a fraudulent conveyance or fraudulent transfer or a voidable distribution or voidable dividend ii the subordination or recharacterization of the estate or interest being insured by this Policy as a result of the application of the doctrine of equitable subordination or iii the transaction creating the estate or interest insured by this Policy being deemed a preferential transfer except where the preferential transfer results from the failure of the Company or its issuing agent to timely file for record the instrument of transfer to the Insured after delivery or the failure of such recordation to impart notice to a purchaser for value or a judgement or lien creditor include environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land is located g access legal right of access to the land and not the physical condition of access The coverage provided as to access does not assure the adequacy of access for the use intended 2 CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured or only so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest This policy shall not continue in force in favor of any purchaser from the insured of either i an estate or interest in the land or ii an indebtedness secured by a purchase money mortgage given to the insured 3 NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The insured shall notify the Company promptly in writing i in case of any litigation as set forth in Section 4a below or ii in case knowledge shall come to an insured hereunder of any claim of title or interest that is adverse to the title to the estate or interest as insured and that might cause loss or damage for which the Company may be liable by virtue of this policy If prompt notice shall not be given to the Company then as to the insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required provided however that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice When after the date of the policy the insured notifies the Company as required herein of a lien encumbrance adverse claim or other defect in title to the estate or interest in the land insured by this policy that is not excluded or excepted from the coverage of this policy the Company shall promptly investigate the charge to determine whether the lien encumbrance adverse claim or defect is valid and not barred by law or statute The Company shall notify the insured in writing within a reasonable time of its determination as to the validity or invalidity of the insureds claim or charge under the policy If the Company concludes that the lien encumbrance adverse claim or defect is not covered by this policy or was otherwise addressed in the closing of the transaction in connection with which this policy was issued the Company shall specifically advise the insured of the reasons for its determination If t Vii 1 sifsaiitiisLa3s ISSUED BY OWNER POLICY OF TITLE INSURANCE 44 0278 100 7833 CHICAGO TITLE INSURANCE COMPANY SUBJECT TO THE EXCLUSIONS FROM COVERAGE THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS Chicago Title Insurance Company a Missouri corporation herein called the Company insures as of Date of Policy shown in Schedule A against loss or damage not exceeding the Amount of Insurance stated in Schedule A sustained or incurred by the insured by reason of 1 Title to the estate or interest described in Schedule A being vested other than as stated therein 2 Any defect in or lien or encumbrance on the title 3 Any statutory or constitutional mechanics contractors or material mans lien for labor or material having its inception on or before Date of Policy 4 Lack of a right of access to and from the land 5 Lack of a good and indefeasible title The Company also will pay the costs attorneys fees and expenses incurred in defense of the title as insured but only to the extent provided in the Conditions and Stipulations In Witness Hereof CHICAGO TITLE INSURANCE COMPANY has caused this policy to be executed by its President under the seal of the Company but this policy is to be valid only when it bears an authorized countersignature as of the date set forth in Schedule A LONGHORN TITLE COMPANY 801 Main Street Georgetown Texas 78627 512 869 2661 FAX 512 9304194 horized Signatory CHICAGO TITLE INSURANCE COMPANY E resid sr rtisrattsi mom R 5 1 Secretary I Reorder Form No 8272 Rev 193