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C'. (" \. / ~. .' e e CONDITIONS AND STIPULATIONS 1. If the proposed Insured has or acquires actual knowledge of any defect, lien, encumbrance, adverse claim or other matter affecting the estate or interest or mortgage thereon covered by this commitment other than those shown in Schedule B hereof, and shall fail to disclose such knowledge to the Company in writing, the Company shall be relieved from liability for any loss or damage resulting from any act of reliance hereon to the extent the Company is 'prejudiced by failure to so disclose such knowledge. If the proposed Insured shall disclose such knowledge to the Company, or if the Company otherwise acquires actual knowledge of any such defect, lien, encumbrance, adverse claim or other matter, the Company at its option may amend Schedule B of this commitment accordingly, but such amend- ment shall not relieve the Company from liability previously incurred pursuant to Paragraph 2 of these Conditions and Stipulations. 2. Liability of the Company under this commitment shall be only to the named proposed Insured and such parties included under the definition of Insured in the form of policy or policies committed for and only for actual loss incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to eliminate exceptions shown in Schedule C, or (c) to acquire or create the estate or interest or mortgage thereon covered by this commitment. In no event shall such liability exceed the amount stated in Schedule A for the policy or policies committed for and such liability is subject to the insuring provisions and the Conditions and Stipulations and the Exclusions from Coverage of the form of policy or policies committed for in favor of the proposed Insured which are hereby incorporated by reference and are made a part of this commit- ment except as expressly modified herein. 3. Any action or actions or rights of action that the proposed Insured may have or may bring arising out of the status of the title to the estate or interest or the status of title to the estate or interest or the status of the mortgage thereon covered by this commitment must be based on and are subject to the provisions of this commitment. 4. THE POLICY TO BE ISSUED PURSUANT TO THIS.' COMMITMENT DOES NOT GUAR. ANTEE THAT THE INSURED PROPERTY HAS ADEQUATE TITLE TO ALLOW IT TO BE USED, SOLD, TRANSFERRED, LEASED OR MORTGAGED FOR ANY PURPOSE INTEND- ED BY THE PURCHASER NOR WILL IT PROVIDE COVERAGE FOR POSSIBLE LOSS OF OPPORTUNITY OR ECONOMIC EXPECTATION. IN THE EVENT OF A PARTIAL FAIL- URE OF TITLE, WHICH MAY SUBSTANTIALLY AFFECT THE USE OR MARKETABILITY OF THE PROPERTY, THE COMPANY MAY BE REQUIRED TO PAY ONLY THE PRO-RATA PART OF THE AMOUNT OF THE POLICY TO BE ISSUED WHICH THE TITLE DEFECT BEARS TO THE ENTIRE INSURED PROPERTY. All notices required to be given the Company and any statement in writing required to be furnished the Company shall be addressed to it at P.O. Box 2029, Houston, Texas 77252. STE"'\VART TITLE GU ARANTY COMPANY ..... . .~