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... ..' , " . CONDITIONS AND STIPULATIONS - Continued 4. DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSUREO 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 tiUe or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy, The Company shall have the right to select counsel of its choice (SUbject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action that allege matters not insured against by this policy, ' (b) The Company shall have the righ~ at its own cos~ 10 institute and prosecute any action or proceeding or 10 do any other act that in its opinion may be necessary or desirable 10 establish the tiUe 10 the estate or Interest, as insured, or 10 prevent or reduce loss or damage 10 the insured, The Company mey take any eppropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall notlhereby concede liability or waive any proviSion of this policy, If the Company shalleX8rcise ils righls undar this paragraph, it shall do so dlllgentiy, (c) Whenever the Company shall have brought an action or Interposed a defense as requirad or permllled by the proviSions of this policy, the Company may pursue any litigation 10 final determination by a court of competent Jurisdiction and expressly reserves the right, In lis sole discretion, 10 appeel from any adverse Judgment or order, (d) In all cases whera this policy parmlls or requires the Company to prosecute or provide for the defeose 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 appeels therein, and permit the Company to use, at lis option, the name of the Insured for this purpose, Whenever requested by the Company, the Insured, at the Company's expense, shall give the Company all reesonable aid (I) In any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting selltement, and (II) In any other lawful ael that In the opinion of the Company may be necessary or deslreble 10 establish the tltie to the estate or Interest as Insured. If the Company Is prejudiced by the failure of the Insured 10 fumish the required cooperation, the Company's obligations to the Insured under the policy shall terminate, Including any liability or obligation to defend. prosecute, or continue eny litigation, wfth regard to the mailer or mailers requiring such cooperation, 5. PROOF OF LOSS OR DAMAGE. In addition 10 and after the notices requirad 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 fumished 10 the Company within 91 days after the insured claimant shall ascertain the facts giving rise 10 the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the titie, or other mailer insured against by this policy that constitutes the basis of loss or damage and shall state, 10 the extent possible, the basis of calculating the amount of the loss or damage, If the Company is prejudiced by the failura of the insured claimant to provide the required proof of loss or damage, the Company's obligations 10 the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the mailer or matters requiring such proof of loss or damage, In addition, the insured claimant may reasonably be required 10 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 pieces as may be designated by any authorized representative of the Company, all records. books. ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the Insured claimant shall grant its permission, in writing, for any authorized representative of the Company 10 examine. inspect and copy all records, books, ledgers, checks, correspondance and memoranda in the custody or control of a third party, which reasonably pertain 10 the loss or damage, All information designated as confidential by the insured claimant provided 10 the Company pursuant to this Section shall not be disclosed 10 others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim, Failure of the insured claimant 10 submit for examination under oath, produce other reasonably requested information or grant permission 10 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 undar this policy, the Company shall have the following additional options: (a) To Payor Tender Payment of the Amount of Insurance. To payor tender payment of the amount of Insurance under this policy, together with any cosls, allomeys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up 10 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 10 the insured under this policy, other than 10 make the payment required, shall terminate, including any liability or obligation 10 defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cencellation, (b) To Payor Otherwise Settle With Parti. Other than the Insured or With the Insured Claimant (i) 10 payor otherwise sellte with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, allomeys' fees and expenses incurred by the insured claimant, which were authorized by the Company up to the time or payment and which the Company is obligated to pay; or (ii) 10 pay or othlllWise sellle with the insured claimant the loss or damage provided for under this policy. together with any costs. allorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company up 10 the time of payment and which the Company is obligated to pay, Upon the exercise by the Company of either of the options provided for In paragraphs (b)(i) or (ii), the Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required 10 be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation, 7. DETERMINATION, EXTENT OF LIABILITY AND CONINSURANCE, 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: Q) the Amount of Insurance stated in Schedule A; eii) the difference between the velue 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 althe 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 percenl 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 10 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 10 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 amount expended for the i!l1provemenl. The provisions of this paragraph shall not appty 10 costs, allomeys' fees and axpenses for which the Company is tiable under this policy, and shall only apply to that portion of any loss which exceeds, in the eggregate, 10 percent of the Amount of Insurance stated in Schedule A, (c) The Company will pay only those costs, allorneys' fa.. and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 6. APPORTIONMENT If the land described in Schedule A consists of two or more parcels that are not used as a single site, and a loss is established affecting one or more of the parcels but not all, the loss shall be computed and sellled 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 10 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 altached to this policy, 9, LIMITATION OF LIABILITY. (a) If the Company establishes the tiUe, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access 10 or from the land, all as insured, or takes action in accordance with Section 3 or Section 6, in a reasonably diligent manner by any method, including litigation and the completion of any appaals therefrom, it shall have full parformed ils obligations with respect 10 that mailer and shall not be liable for any loss or damage caused thereby, (b) In the event of any litigation, Including litigation by \he Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse 10 the titie as insured. (c) The Company shall not be liable for loss or damage 10 any insured for liability voluntarily assumed by the insured in sellting 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, allorneys' fees and expanses, shall reduce the amount of the insurance pro tanio, (Continued on Reverse Side of Page)