1992 Eddie V. Gray & G. Decker Mc Kim- tract 11 and 12,Warranty Deed

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1, DEFINITION OF TERMS, The following terms when used in this policy mean: take one of the following actions: (i) institute the necessary proceedings to clear (a) "insured": the insured named in Schedule A, and, subject to any rights the lien,. encumbrance, adverse claim or defect from the title to the estate as or defenses the Companr would have had against the named insured, those who insured; (ii) indemnify the insured as provided in this policY; "[Iii) -upon payment of succeed to the interest 0 the named insured by operation of law as distinguished appropriate premium and charges therefor, issue to the insured claimant or to a from purchase including, but not limited to, heirs, distributees, devisees, survivors, subsequent owner, mortgagee or holder of the estate or interest in the land personal representatives, next of kin, or corporate, partnership or fiduciary suc- insured by this policy, a policy of title insurance without exception for the lien, cessors, and specifically, without limitation, the following: encumbrance, adverse claim or defect, said policy to be in an amount equal to (i) The successors in interest to a corporation resulting from merger or the current value of the property or, if a mortgagee policy, the amount of the consolidation or the distribution of the assets of the corporation upon partial or loan; (iv) indemnify another title insurance company in connection with its issu- complete liquidation; ance of a policy(ies) of title insurance without exception for the lien, encum- (ii) The partnership successors in interest to a general or limited part- brance, adverse claim or defect;Jv) secure a release or other document discharg- nership which dissolves but does not terminate; ing the lien, encumbrance, a verse claim or defect; or (vi) undertake a (iii) The successors in interest to a general or limited partnership result- combination of (i) through (v) herein. ing from the distribution of the assets of the general or limited partnership upon 4. DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSURED partial or complete liquidation; CLAIMANT TO COOPERATE. , (iv) The successors, i~ interest to a joint v~nture resulting f,ro~ th~ distri- (a) Upon written request by the insured and subject to the options contained butlon of the assets of the 10lnt ve~ture upon partial or complete IIq~ldatloni in Section 6 of these Conditions and Stipulations, the Company, at its own cost , (v) The successor or substitute trustee(s) of a trustee named In a written and without unreasonable delay, shall provide for the defense of an insured in trust Instru~ent; or , , "litigation in which any third party asserts a claim adverse to the title or interest as , , (VI) The successors m Interest to a trustee or trust r~s~ltl~g from the dls- insured, but only as to those stated causes of action alleging a defect, lien or trlbutlon ~f all or pa~ of the as~ets of the !ru,st to the benefiCiaries thereof. encumbrance or other matter insured against by this policy, The Company shall (b) "Insured claimant": an Insured claiming loss or damage. have the right to select counsel of its choice (subject to the right of the insured to (~) "knowledge" ~r "known": act~al knowledge, not constructiv~ knowledge object for reasonable causel to represent the insured as to those stated causes of or ~otlce.that, may ,be Imputed to an Insured b~ re~son of the publ.'c reco~ds as action and shall not be liab e for and will not pay the fees of any other counsel. defined In thl,s policy or any other records which Impart constructive notice of The Company will not pay any fees, costs or expenses incurred by the insured in matters affecting the land. the defense of those causes of action that allege matters not insured against by (d) "land": the land described or referred to in Schedule A, and imp,rove- this policy, me~ts affixed thereto that by law con~titute real property, ~he term "land ' do~s (b) The Company shall have the right, at its own cost, to institute and prose- not mclode any prope~ be~ond .the lines of the area descrlb~d or re~erred to In cute any action or proceeding or to do any other act that in its opinion may be Schedule A, nor any right, title, I~terest, estate or easem~nt In a~uttlng stree!s, necessary or desirable to establish the title to the estate or interest, as insured, or roa~s~ avenues, alleys, I~nes, w,ays or waterways, but nothing herein, s~all modify to prevent or reduce loss or damage to the insured, The Company may take any or, hmlt!he extent to which a right of access to and from the land IS Insured by appropriate action under. the terms. of this policy,.whether or not it shall be liable thiS policy" , hereunder, and shall not thereby concede liability or waive any provision of this . (e) 'mortgage": mortgage, deed of trust, trust deed, or other security policy, If the Company shall exercise its rights under this paragraph, it shall do so Instrume~!.,,, ,. diligently. . ,(f) public records : reco~ds establlsh!d un~er state statutes ~t Date of (c) Whenever the Company shall have brought an action or interposed a Pohcy for the purpose of Imparting con~tructlve notice of m~tters relating to r~al defense as required or permitted by the provisions of this policy, the Company prop~rty to purchase,: for value and wlthout"know,ledge, WI~,h respect to ~ectlon may pursue any litigation to final determination by a court of competent jurisdic- l(a)(lv) of the ExclUSions From Coverage, public records also shall mclude tion and expressly reserves the right in its sole discretion to appeal from any e~vi~onmental protect!on,lie~s fil~d in the reco!ds of the clerk of the United States adverse judgment or order.' , district c~~rt for ,!he dlstrl~ In which the land IS located, , , , (d) In all cases where this policy permits or requires the Company to prose- (g) Access: legal right .of access to the land and not the phYSical condition cute or provide for the defense of any action or proceeding,. the insured shall of access. The cov!rage prOVIded as to access does not assure the adequacy of secure to the Company the right to 50 prosecute or provide defense in the action access for the use mtended. or proceeding, and all appeals therein, and permit the Company to use, at its 2, CONTINUATION O~ INS~RANCE A~ER C~NVEYANCE OF TITLE. , , option, the name of the insured for this purpose, Whenever requested by the The co~erage of thiS policy shall ~ontlnue In !orce as of Dat~ of Pol.'cy In Company, the insured, at the Company's expense, shall give the Company all favor of an Insure,d only so long as the Insured retains an estate or Interes! In the reasonable aid (i) in any action or proceeding, securing evidence, obtaining wit- land, or holds an Ind~btedness secured by a purcha~e money mortgag~ gl~~n by nesses, prosecuting or defending the action or proceeding, or effecting settle- a purchaser from the Insured, or only so long a~ the Ins~red shall have liability by ment, and (ii) in any other lawful act that in the opinion of the Company may reason of covenants of, warranty ~ade, by the Insured I~ any. transfer, or convey- be necessary or desirable to establish the title to the estate or interest as insured. ance of the estate or I~terest. ThiS 'policy, shall not con~lnue In ,force In favor ~f If the Company is prejudiced by the ,failure of the insured to furnish the required an~ purchaser from the Insured of either (I) an estate or mte~est In the I~nd, or (II) cooperation, the Company's obligations to the insured under the policy shall ter- an Indebtedness secured by a purchase money mortgage given to the Insured. minate, including any liability or obligation to defend, prosecute, or continue any 3. NOTICE OF QAIM TO BE GIVEN BY INSURED CLAIMANT. litigation, with regard to the matter or matters requiring such cooperation, The insured shall notify the Company promptly in writing (i) in case of any 5. PROOF OF LOSS OR DAMAGE. litigation as set forth in Section 4(a) below, or (ii) in case knowleage shall come to In addition to and after the notices required under Section 3 of these Condi- an insured hereunder of any claim of title or interest that is adverse to the title to tions and Stipulations have been provided the Company, a proof of loss or dam- . the estate or interest, asinsured,and-that-might-causecloss>or damage-for'which" - '-~ -age signed~and-sworn to by the insured. c1aimant'shcill-be-fiirnishlfd-to the Com- the Company may be liable by virtue of this policy, If prompt notice shall not be pany within 91 days after the insured claimant shall ascertain the facts giving rise given to the Company, then as to the insured all liability of the Company shall to the loss or damage. The proof of loss or damage shall describe the defect in, terminate with regard to the matter or matters for which prompt notice is or lien or encumbrance on the title, or other matter insured against by this policy required; provided, however, that failure to notify the Company shall i~ no case that constitutes the basis of loss or damage and shall state, to the extent possi- prejudice the rights of any insured under this policy unless the Company shall be ble, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure and then only to the extent of the prejudice, prejudiced by the failure of the insured claimant to provide the required proof of When, after the Date of the Policy, the insured notifies the Company as 1055 or damage, the Company's obligations to the insured under the policy shall required herein of a lien, encumbrance, adverse claim or other defect in title to terminate, including any liability or obligation to defend, prosecute, or continue the estate or interest in the land insured by this policy that is not excluded or any litigation, with regard to the matter or matters requiring such proof of 1055 or excepted from the coverage of this policy, the Company shall promptly investi- damage, gate the charge to determine whether the lien, encumbrance, adverse claim or In addition, the insured claimant may reasonably be required to submit to defect is valid and not barred by law or statute. The Company shall notify the examination under oath by any authorized representative of the Company and ins~r!d in ~riti~9! within a, reasonable, time, of its determination ~s to the shall produce for examina!ion, inspection and copying, at such r~asonable times vahdlty or Invahdlty of the Insured's claim or charge under the pohcy, If the and places as may be deSignated by any authOrized representative of the Com- Company concludes that the lien, encumbrance, adverse claim or defect is not pany, all records, books, ledgers, checks, correspondence and memoranda, covered by this policy, or was otherwise addressed in the closing of the transac- whether bearing a date before or after Date of Policy, which reasonably pertain tion in connection with which this policy was issued,. the Company shall specifically to the 1055 or damage, Further, if requested by any authorized representative of advise the insured of the reasons for its determination. If the Company concludes the Company, the insured claimant shall grant its permission, in writing, for any tKat the lierf, encumbrance, adverse claim or defect is valid, the Company shall authorized representative of the Company to examine, inspect and copy all .continued and concluded on last page of this POI;CY) e CONDITIONS AND STIPULATIONS