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HomeMy WebLinkAboutContract 45651 (2)CAUSE NO. O. 1O432 / 41-2 CITY OF FORT WORTH VS. SPENCER HODGE AND WIFE, CAROLYN HODGE • CITY SECRETAm' CONTRACT NO. 111 oV CONDEMNATION 7 PROCEEDING COUNTY COURT AT LAW NO. 2 TARRANT COUNTY, TEXAS SETTLEMENT AGREEMENT 1. This Settlement Agreement ("Agreement") is entered into by and between City of Fort Worth, a municipal corporation located in Tarrant County, Texas ("City") and Spencer Hodge and Wife, Carolyn Hodge ("Hodge"). City and Hodge are sometimes referred to individually as a "Party" and collectively as the "Parties." 2. City filed Cause No. 10--83274,-2, City of Fort Worth v. Spencer Hodge and Wife, Carolyn Hodge, et al., a Condemnation Proceeding, in the County Court at Law No. 2 of Tarrant County, Texas. In the condemnation proceeding, the City asserted its eminent domain powers to condemn and acquire property owned by Hodge for the Lebow Channel Drainage Improvement Project. The property that is the subject of this settlement is depicted on Exhibits "A" and "B" to the attached Agreed Judgment, to be entered in conjunction herewith, and will be hereinafter referred to as the "Property." 3. On or about September 20, 2012, after hearing evidence regarding the value of the condemned Property and damages, a panel of Special Commissioners awarded the sum of $88,300.00 as the total sure to be paid by City to Hodge for the acquisition of 0.462 acres (the "Award of Commissioners"). On or about October 19, 2012, the sum of RCflVED JUH oI•ti4 OFFICIAL RECORD CITY SECRETARY Ft WORTH, TX And $88,300.00, representing the amount of the Award, was tendered by the City into the Court's Registry. 4. On or about October 12, 2012, Hodge commenced appeal of the Award of Commissioners by written objection filed with the Court. 5. After further negotiations, the Parties agree that it is best for the City to take Hodge's entire property, an improved 1.272 acre tract, which is more specifically defined herein as the Property. 6. The City has also advised Defendants in writing that they are entitled to relocation benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act because of the acquisition and the City agrees to provide such benefits as set forth herein. 7. The Parties, without admitting any facts or liability on any claim or cause of action, but continuing to deny the same in order to avoid the cost, inconvenience and burdens associated with contested litigation, desire to compromise and settle all outstanding claims between them on the terms set forth herein. Therefore, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and in consideration of the promises and covenants set forth in this Agreement, the Parties agree as follows: a. Settlement Payments. City and Hodge hereby agree to settle this condemnation case by payment to Hodge a total amount of $430,000.00 to obtain the Property described in the legal description attached to the Agreed Judgment, Exhibit A. The City will also pay 2 monetary consideration for relocation obligations as discussed below. City and Hodge agree that Hodge has already withdrawn $88,300.00 from the Court's Registry (plus accrued interest) that the City deposited pursuant to the Award of Commissioners, and that $88,300,00 is a portion of the settlement funds under this Agreement. After the Agreed Judgment is signed by this Court, City and Hodge agree that City will pay Hodge the balance of $341,700.00 at a title company as a portion of the final settlement (the other portion is relocation as discussed below) and payment in full for the Property under this Agreement. b. Final Adjudication of Case. After the execution of this Agreement by the last of the Parties, the Parties will file the Agreed Judgment attached as Exhibit A. The Parties agree to cooperate with one another in signing, delivering, and filing any necessary documents and taking any other action reasonably necessary to cause the prompt and final adjudication of the condemnation case, and Hodge's appeal of the Award of Commissioners. c. Passing Title to City. The Parties agree that the City takes its title through the Agreed Judgment in the case, such Judgment vesting Defendants' title to the Property in the City. d. Relocation Payments. City will pay relocation benefits to fully relocate Hodge's property to Hodge's new permanent business location. Hodge agrees to move the business and accept a cash payment from the City in the total amount of $248,686.00. The parties agree that $248,686.00 is the total amount of relocation and fe-establishment fees the City will pay to Hodge under this agreement. The City's payment of $248,686.00 satisfies all of its obligations for relocation and re- establishment under Chapter 21 of the Property Code. The timing and structure of the payment of the $248,686,00 is set forth below in (f). e. 60 Days to Move. Hodge will have sixty (60) days from the date of funding to vacate the Property. The City may allow Hodge more than 60 days to vacate at its sole discretion. Should Hodge require more than 60 days to vacate, Hodge will have to pay $1,500.00 for the first additional 30 days to lease the Property. Any further extensions and additional time will be subject to the discretion of the City and for an amount and time period acceptable to the City. Any personal property left on the Property at the conclusion of the original 60 days to move, or after any subsequent extensions, will become property of the City and the City may and will dispose of such property. Defendants agree to remove all containers of oil or any other chemicals that are stored above ground. f. Closing. Title Company, and Escrow Agreement. After title has passed through the Agreed Judgment, the City will pay the $341,700.00 remaining consideration on the sale of the Property by making such $341,700.00 payment to Alamo Title Company for disbursement to Defendants and their attorneys. The City shall additionally pay 2/3 of the total relocation benefit (2/3 of $248,686.00 = $165,790.66) to Alamo Title Company at the same time as the payment of the $341,700.00 consideration for the property. Alamo Title shall then make disbursements of the consideration to Defendants as follows: The title company shall wire $55,000.00 to the Dawson & Sodd, LLP Trust Account (with wiring instructions to be provided separately) as a portion of the legal fee owed by Defendants to its attorneys, Dawson & Sodd, LLP, per separate Fee Agreement between Defendants and Dawson & Sodd. The remainder $452,490.66 ($341,700.00 plus 2/3 of the relocation benefit $165,790.66, minus the $55,000.00 legal fee payment to Dawson & Sodd, LLP) shall then be made payable to Defendants as directed by Defendants (including by wiring the proceeds to the title company of Defendants' choosing for use in subsequent closing of the property Defendants are moving their business to). In addition to these payments, at the same time the City makes payment of the $341,700.00 and the $165,790.66, the City shall also deposit 1/3 of the total relocation payment ($82,895.34) into an escrow account at Alamo Title Company for the benefit of Defendants, thereby concluding all payment obligations of the City. This last deposit will sit in escrow until Defendant Hodge completes his move. Alamo Title Company will act under an Escrow Agreement concerning the $82,895.34. Paragraph 2 of the Escrow Agreement shall provide that the last 1/3 payment of $82,895.34 shall be due and payable to Hodge immediately upon Alamo's receipt of the following: (a) written notice from Defendant Hodge where such notice (1) advises Alamo that Hodge has completed the business move and (2) provides the date the move was completed and (b) written or oral confirmation from the City that there are no containers of chemicals or oil left on the Property. In the event the City has not provided Alamo the confirmation described in the preceding sentence within three business days of receipt of the notification from Hodge, Alamo will be obligated to disburse the funds to Hodge. Hodge will provide a copy of the notice of completing its move to counsel for the City at the same time notice is provided to Alamo. The City can provide no other objection to disbursement of the funds to Hodge other than that Hodge left containers of chemicals or oil on the property. In the event there are containers of oil or chemicals left after the move and the City provides written notice of such to Alamo, Alamo will not be obligated to make payments to Hodge until the condition is cured by moving the containers or by some other agreement with the City. After receipt of the notice of completing the move and confirmation from the City (or expiration of 3 days without receipt of the confirmation from the City) Alamo Title Company shall then pay to Hodge the remaining $82,895.34 (either by wire or check) from the escrow account thereby concluding the payment of all consideration and Just Compensation due to Defendants in this case. 8. The above settlement payment and payment of relocation benefits are part of the Just Compensation in this case. this agreement is entered by Defendants under threat of eminent domain from the City and in settlement of the above -referenced condemnation case. 9. Waiver of Right to Repurchase. Defendants waive any and all repurchase rights available under Texas Property Code Chapter 21 so long as the City completes the project within the time limits set forth in Chapter 21 and so long as a substantial portion of the Property is used for the project. Repurchase rights are not waived as to any portion of the Property if the City fails to complete its project within the time limits set forth in Chapter 21 or if the project, when completed, does not use a substantial portion of the Property for the project. For purposes of this provision, the project will be deemed to use a substantial portion of the Property if it occupies at least all of the portion of the Property that is within 140' of the eastern property line of the Property (that property line nearest Guenther Ave. which bears S 5° 36' 26" E) 10. Release. For and in consideration of the payment, agreements and releases set forth herein, Hodge, for itself and on behalf of its heirs, and assigns, and all persons, natural or corporate, in privity with it, its predecessors, successors, parents, subsidiaries, members, managers, partners, shareholders, officers, directors, employees, agents, representatives, insurers, attorneys, affiliates, associated entities of every kind and nature and assigns, hereby releases, acquits and forever discharges City and its subdivisions, departments, officials, commissioners, predecessors, successors, employees, agents,. representatives, insurers, attorneys, and affiliates from all claims, demands, defenses, 7 controversies, actions, debts or causes of action, of whatever nature or character, fixed or contingent, liquidated or unliquidated, known or unknown, which Hodge had, now has, or may have in the future, relating in any manner to this cause of action and/or the transactions, facts, omissions, conduct, actions, counts, damages and causes of action alleged therein, or which could have been alleged therein, arising at any time from the beginning of time to the date that this Agreement is last executed by any Party hereto, This is a general release of all possible claims and causes of action of every kind and character related to this case and/or the transactions, facts, omissions, conduct, actions, counts, damages, and causes of action alleged therein, or which could have been alleged therein, and is to be interpreted liberally to effectuate maximum protection for the City, 11, Representations and Warranties. As a material inducement to each Party's entry into this Agreement, the other Party unconditionally represents and warrants at the signing of this Agreement and delivery of any documents hereunder: (a) that it has carefully read this Agreement, that it has had an opportunity to discuss its effect with counsel of its choice, and that it fully understands its final and binding effect, (b) that it has the necessary authority to settle this matter fully on behalf of itself and all parties whose interests it purports to release in accordance with the terms of this Agreement, and that the individuals who execute this Agreement on its behalf are fully authorized to execute the Agreement and to bind the respective Parties; (c) that it has not assigned to others, but is the owner of the claims released herein and has the entire and exclusive authority to settle them on the tennis herein set forth; 8 that it has executed this Agreement as its free and voluntary act, without any fraudulent inducement, duress, coercion or undue influence exerted by or on behalf of any other Party; and that no promise, representation, conduct, or consideration by any other Party to this Agreement, its owners, agents, servants, employees, attorneys, or persons in privity with it, has induced the execution of this Agreement except for those representations and agreements specifically set forth herein. 12. Miscellaneous. The provisions of this Agreement comprise all of the terms, conditions, agreements, and representations of any of the Parties respecting the settlement • and compromise of this dispute, the matters relative thereto, and the matters respecting this Agreement. This Agreement may not be amended, supplemented, or otherwise modified except by further written agreement of the Parties. 13. Phis Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, insurers, creditors, agents, representatives, associated entities and assigns. 14. As this Agreement is not probative of any liability or admission of same with respect to the acts complained of in the case, neither this instrument, the agreements evidenced hereby, nor any related evidence, will be admissible in evidence against any of the Parties in any lawsuit, claim or arbitration proceeding of any nature, except in an action for breach of, to enforce, or to construe the Agreement. 15. This Agreement may be executed in multiple counterparts and transmitted via facsimile, any and all of which shall be construed and enforceable as the Agreement 16. The effective date of this Agreement shall be the date of the execution of this Agreement by the last of the Parties. 9 17. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future Laws effective dunng the term hereof, such provision shall be fully severable, and the remaining provisions thereof shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision, or by its severance herefrom. 18. This Agreement shall be construed under the laws of the State of Texas. 19. This Agreement shall not be construed against any Party as the drafting party. 20. Each Party will pay its own casts and attorneys' fees incurred in connection with the Appeal and/or this Agreement. CAROLYN/ii6DGE Date: `Y 'Ito /1 APPROVED AS TO FORM: Matthew Hurt Attorney for Spencer Hodge and Carolyn Hodge 10 17. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term hereof, such provision shall be fully severable,. and the remaining provisions thereof shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision, or by its severance herefrom. 18. This Agreement shall be construed under the laws of the State of Texas. 19_ This Agreement shall not be construed against any Party as the drafting ply, 20. Each Party will pay its own costs and attorneys' fees incurred in connection with the Appeal and/or this Agreement. SPENCER HODGE Date: CAROLYN HODGE Date: APPROVED AS TO FORM: 42 , r W -% Matthew Hurt 4'Pent-54 4 Attorney, for Spencer Hodge and Carolyn Hodge 10 CITY OF FORT WORTH By: Asa Fernando Costa Assistant City Manager Date: 4/ /A# APPROVED AS TO -I? I AND LEGALITY: Christopher B . Mosley, Senior Assistant City Attorney, City of Fort Worth 11 OFFICIAL RECORD CFI SECRETARY FT. WORTH, TX STATE OF TEXAS COUNTY OFTARRANT ACKNOWLEDGMENTS § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared SPENCER HODGE, known to me to be the same person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this /1/ day of April, 2014. CMIITIM NWROIXAX ANOIOON Nolary Public, Strife of Texos My Commlu o.f rtp4rn March 0r, 2016 STATE OF TEXAS COUNTY OF TARRANT INotary Public in and for The State of Texas BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared CAROLYN HODGE, known to me to be the same person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 1 QJ day of April, 2014. GNIifYIN I$AI,J€ LAMAXIAR}Ofl NoFory Public. Mole Of Toros I My Comofllog rxpltes Moto, 0r, 2016 Notary Public in and for The State of Texas 12 STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned authority a Notary Public in and for the State of Texas, on this day personally appeared Fernando Costa, Assistant City Manager for the City of Fort Worth, Texas, known to me to be the same person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the City of Fort Worth and that he executed the same as the act of the City of Fort Worth for the purposes and consideration therein expressed, and in the capacity therein stated. 7� day of April, 2014. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this //AMA 1-t Notary ublic in an for, j The State of Texas TERESA MJOHNSON My Commission Expires Apri! 24, 2016 13 EXHIBIT A Final Agreed Judgment Page 1 of 12 • Electronically Recorded Official Public Records ozn.ciTe Mary Louise Garcia CITY OF FORT WORTH, Plaintiff, V. SPENCER HODGE, ET AL, Defendants. Tarrant County 4/28/2014 3:33 PM D214084923 PGS 12 $60.00 Submitter. XEROXCOMMERCIAL SOLUTIONS CAUSE NO.10-8327M2 § CONDEMNATION PROCEEDINGS § § § IN THE COUNTY COURT AT LAW § NO.2 § § OF TARRANT COUNTY, TEXAS AGREED FINAL JUDGMENT BB IT RBMSMBERBD, that on this day, came on to be considered the above -entitled and • numbered cause between the C1TY OF FORT WORTH, TEXAS (hereinafter "Plaintiff"), and SPENCER HODGE and CAROLYN HODGE, (hereinafter "Defendants") and announced that they have reached an agreement that resolve all disputed issues in this matter. Defendants do not challenge that Plaintiff has the right to recover and condemn the property • described in Exhibits "A" and "B" attached hereto (hereinafter "theProperty"); that all prior steps and due pmcesses of law were duly, legally and timely performed; that all legal prerequisites for trial of this cause by this Court had been duly complied with; that the only issue remaining in this cause to be tried by this Court is the amount of compensation due to Defendants as a result of the condemnation of the Property; and that this Court has jurisdiction of such issue and this cause of action. AGREED FINAL JUDGMENT PAGE 1 • TRUE AND CORRECT COPY OF SCANNED ORIGINAL RECORD FILED IN *nor LOUISE GA"RCIAcouNTYt '�c 17 2014 CITY OF FORT WORTH, Plaintiff, V. SPENCER HODGE, ET AL, Defendants. CAUSE N0.10-83274-2 • § § § § § CONDEMNATION PROCEEDINGS IN THE COUNTY COURT AT LAW NO.2 OF TARRANT COUNTY, TEXAS AGREED FINAL JUDGMENT • BE IT REMEMBERED, that on this day, came on to be considered the above -entitled and numbered cause between the CITY OF FORT WORTH, TEXAS (hereinafter "plaintiff'), and SPENCER HODGE and CAROLYN HODGE, (hereinafter "Defendants") and announced that they have reached an agreement that resolves all disputed issues in this matter. I. Defendants do not challenge that Plaintiff has the right to recover and condemn the property described in Exhibits "A" and "B" attached hereto (hereinafter "the Property"); that alt prior steps and due processes of law were duly, legally and timely performed; that all legal prerequisites for trial of this cause by this Court had been duly complied with; that the only issue remaining in this cause to be tried by this Court is the amount of compensation due to Defendants as a result of the condemnation of the Property; and that this Court has jurisdiction of such issue and this cause of action. AGREED FINAL JUDGMENT PAGE 1 TRUE AN0CORRECT COPY OF SCANNED ORIGINAL RECORD FILED IN TARRAN1 COUNTY, TEXAS: MARY LOUISE GARCIA, COUNTYAPR< 1 7 2014 From the papers heretofore filed in this cause, the evidence introduced upon the trial of this cause, and the agreements and stipulations made by the parties upon the trial of this cause, the Court finds; (1) That under and by its Third Amended Petition for Condemnation filed with the clerk of this Court an April 17, 2014, Plaintiff sought and prayed for the acquisition of the Property to enable Plaintiff to "construct the Lebow Channel Drainage Improvement Project to alleviate flooding in multiple neighborhoods on the north side of the City of Fort Worth." Plaintiff seeks the Property from Defendants, through condemnation of the property located in Tarrant County, Texas; save and except the oil, gas, sulfur, and other minerals which can be removed from beneath the property without any right whatsoever of ingress or egress to or from, nor any use of, the • surface of said tract of land for the purpose of exploring, developing, drilling or mining of the same; (2) That pursuant to the Original Petition for Condemnation, the Judge appointed three disinterested freeholders of Tarrant County, Texas, as Special Commissioners, who subsequently met, 'took their oaths of office, set a date of hearing before such Special Commissioners, and caused notice thereof to be duly served as prescribed by law, and that the Special Commissioners duly held the hearing; (3) That upon the hearing, Plaintiff appeared, either in person or by its attorneys, and Defendants after receiving proper notice appeared, and that after the hearing, the Special Commissioners trade and rendered their decision and Award in writing on September 20, 2012, and filed the Award with the judge of this Court shortly thereafter, • • AGREED FINAL JUDGMENT PAGE 2 TRUE AND CORRECT COPY OF ORIGINAL RECORD FILED IN TARRANT COUNTY, TEXAS MARY LOUISE GARCIA, COUNTY CLERK (4) That by the written Award, the Special Commissioners awarded to Original Defendants the sum of EIGHTY-EIGHT THOUSAND THREE HUNDRED AND NO/100 DOLLARS ,($88,300.00); (5) That Defendants duly and timely filed an objection and exception to the Award of Special Commissioners and caused Plaintiff to be cited accordingly; (6) That the Plaintiff sought a portion of the entire property (See Plaintiff's First Amended Original Petition in Condemnation) but subsequently amended its petition to seek and acquire the entire property as alleged in the latest petition on file in this case, the Third Amended Petition in Condemnation filed on April 17, 20 14; Whereas all parties have agreed and reached a compromise agreement that the sum of FOUR HUNDRED THIRTY THOUSAND AND NO/100 DOLLARS ($430,000.00) is the sum to which Defendants are entitled by virtue of the condemnation of the Property on the date the Property was condemned, which includes any damages, if any, to the remainder of Defendants' remaining property. Upon due consideration, the Court finds and determines the following: (l) All proceedings necessary to vest this Court with jurisdiction of the parties and the subject matter and the parties of this cause have been instituted, maintained and complied with as required by law; therefore, this Court has jurisdiction of the parties hereto and of the subject matter set forth in this case; (2) Defendants Spencer and Carolyn Hodge are the owners in fee simple of the Property. Plaintiff is condemning and acquiring the fee simple title in and to the Property under and by virtue of these condemnation proceedings, Plaintiff is authorized to condemn the Property; AGREED FINAL JUDGMENT PAGE 3 TRUE AND CORRECT COPY OF ORIGINAL Re CORD FILED IN TARRANT COUNTY, TEXAS: MARY LOUISE GARCIA, COUNTY CLERK • (3) From the pleadings, evidence and the agreement ofthe parties, Defendants should have and recover from Plaintiff the sum of FOUR HUNDRED THIRTY THOUSAND AND NO/100 DOLLARS ($430,000.00); (4) In addition, Defendants and their business located on the Property are entitled to relocation services and/or payment of relocation benefits as separately set forth in the Settlement Agreement executed by Plaintiff and Defendants. (5) Plaintiff should have and recover from Defendants as more specifically set forth in Plaintiffs Third Amended Petition for Condemnation, a fee simple title in and to the Property; (6) That Piaintiff'did an October 19, 2012 deposit into the Registry of this Court the sum of EIGHTY-EIGHT THOUSAND THREE HUNDRED AND NO/100 DOLLARS ($88,300:00) for the use and benefit of Defendants, which amount was withdrawn by proper order entered by this Court on March 18, 2014, and Defendants acknowledge receipt of EIGHTY-EIGHT THOUSAND THREE HUNDRED AND NOI100 DOLLARS (S88,300.00) already .paid by Plaintiff, as evidenced by the withdrawal of same from the Registry of the Court; and after making application of such amount there remains an unpaid balance of THREE HUNDRED FORTY-ONE THOUSAND SEVEN HUNDRED AND NO/100 DOLLARS (S341,700.00) due and payable by Plaintiff jointly to Defendants and their attorneys' (per the terms of the Settlement Agreement) for the use and benefit of Defendants on or before the fifth (5th) day after the date this judgment is signed by the Court, Defendants shall not be entitled to post -judgment • interest above or beyond the above -referenced unpaid balance, provided, however, that if said additional sum is not paid by Plaintiff to Defendants and their attorneys per the terms of the Settlement Agreement within such five (5) day period, Defendants shall be entitled to recover • AGREED FINAL JUDGMENT PAGE 4 TRUE AND CORRECT COPY OF ORIGINAL RECORD FILED IN TARRAN1 COUNTY, TEXAS. MARY LOUISE GARCIA, COUNTY CLERK post judgment interest thereon from the Plaintiff at the rate of 5% per annum compounded annually from the date of judgment; (6) All costs of Court, excluding attorneys' fees, incurred herein should be taxed against Plaintiff, which costs shall be paid only to the County Clerk of Tarrant County, Texas, IV. ft is therefore ORDERED, ADJUDGED, and DECREED that Plaintiff does have and recover of and from Defendants fee simple title in and to the Property situated in Tarrant County, Texas described in Exhibits "A" and "B" attached. Defendants have and are entitled to a judgment from Plaintiff in the sum of FOUR HUNDRED THIRTY THOUSAND AND NO/100 DOLLARS ($430,000.00) for the interests in the Property herein condemned, including damages, if any, to •Defendants' remaining lands. Defendants are also entitled to receive relocation services and benefits and/or payment of relocation benefits pursuant to the separate Settlement Agreement executed by Plaintiff and Defendants. The promises and representations and agreements set forth in the Settlement Agreement consist apart of the Just Compensation to be paid to Defendants and the agreements therein may be enforced in this Court after execution of this Judgment if necessary, V. It is further ORDERED, ADJUDGED, and DECREED that the fee simple title to the land is hereby decreed to and vested in Plaintiff; however, there is excluded from said estate vested in Plaintiff all the oil, gas, sulfur, and other minerals which can be removed from said land. The owners of such oil, gas, sulfur, and other minerals shall not have any right of ingress to or egress from, nor any use of, the surface of said condemned land for the purpose, of exploring, drilling, • developing or mining of the same. AGREED FINAL JUDGMENT PAGE 6 • • Trtur AND CORRECT COPY OF ORIGINAL RECORD FILED IN TARRAN1 COUNTY, TEXAS. WRY LOUISE GARCIA, COUNTY CLERK VL It is further ORDERED, ADJUDGED, and DECREED by the Court that Defendants do have and recover from Plaintiff, and Plaintiff is hereby directed to pay to Defendants and their attorneys • per the Settlement Agreement for the use and benefit of Defendants, the unpaid balance of THREE HUNDRED FORTY-ONE THOUSAND SEVEN HUNDRED AND NO/100 DOLLARS ($341,700.00) for the land described in Exhibits "A" and "B," and as full compensation for the condemnation thereof hereunder. Defendants shall not be entitled to post judgment interest, provided, however, that if said additional sum is not paid by Plaintiff to Defendants and their attorneys within such five (5) day period after the date this judgment is signed by this Court, Defendants shall be entitled to recover post judgment interest thereon from Plaintiff at the rate of 5% per annum compounded annually from the date of judgment. Such payment shall be made as set forth in the Settlement Agreement using a title company who shall make the proper disbursements to Defendants and their attorneys. VII. It is further ORDERED, ADJUDGED, and DECREED that upon payment by Plaintiff-, of the THREE HUNDRED FORTY-ONE THOUSAND SEVEN HUNDRED AND NO/100 DOLLARS ($341,700.00), which is the difference in the amount deposited in the Registry of the Court (EIGHTY-EIGHT THOUSAND THREE HUNDRED AND NO/100 DOLLARS • ($88,300) and the amount of money found by the Court to be the market value of the land acquired by Plaintiff, in fee simple, including damages, if any, to Defendants' remaining lands, FOUR HUNDRED THIRTY THOUSAND AND NO/100 DOLLARS ($430,000.00), and upon completion of its obligations concerning relocation of Defendants and/or their business to their new location (including payment of relocation benefits, all as set forth in the Settlement AGREED FINAL JUDGMENT PAGE 6 • TRUE AND CORRECT COPY OF ORIGINAL RECORD FILED IN TARRAN'{T COUNTY, TEXAS: MARY LOUISE GARCIA, COUNTY CLERK Agreement), Plaintiff shall stand RELEASED and DISCHARGED of its constitutional obligation to pay such compensation for the taking of the Property described in Exhibits "A" and " B." VYII. It is further ORDERED, ADJUDGED AND DECREED that upon payment by Plaintiff to Defendants Spencer and Carolyn Hodge of said THREE HUNDRED FORTY-ONE THOUSAND SEVEN HUNDRED AND NO/100 DOLLARS (S341,700.00), and upon completion of its obligations concerning relocation of Defendants and/or their business to their new location (including payment of relocation benefits, all as set forth in the Settlement Agreement), Plaintiff shall stand RELEASED and DISCHARGED of its constitutional obligation to pay such compensation for the taking of the property described in Exhibits "A" and "B." YX, It is further ORDERED, ADJUDGED AND DECREED that Defendants waive any and all repurchase rights available under Texas Property Code Chapter 21 so long as the City • completes the project within the time limits set forth in Chapter 21 and so long as a substantial portion of the Property is used for the project. Repurchase rights are not waived as to any portion of the Property if the City fails to complete its project within the time limits set forth in Chapter 21 or if the project, when completed, does not, use a substantial portion of the Property for the project. For purposes of this provision, the project will be deemed to use a substantial portion of the Property if it occupies at least all of the portion of the Property that is within 140' of the eastern property line of the Property (that property line nearest Guenther Ave. which bears S 5° 36' 26" E). AGREED FINAL JUDGMENT PAGE 7 • TRUE AND CORRECT COPY OF ORIGINAL RECORD FILED IN TARRAN7 CCUNTV, TEXAS MARY LOUISE GARCIA, COUNTY CLERK X. It is further ORDERED, ADJUDGED and DECREED that all costs of Court related to these proceedings, but not including attorneys' fees, are hereby adjudged against Plaintiff, which costs • shall be paid only to the County Clerk of Tarrant County, Texas. XX. It is finally ORDERED, ADJUDGED and DECREED that this judgment finally disposes of all parties and all claims raised in this cause. SIGNED this 17 day of April, 2014. • OVED AS TO S : C AND FORM; C • STONIER B, MOSLEY Assistant City Attorney State Bar No 00789505 CITY OF FORT WORTH 1000 Throckmorton Street Fort Worth, Texas 76102 (817)392-7600 (817) 392-8359 - Facsimile ATTOR1lrEYS FOR PLAINTIFF, CITY OFFORT WORTH, TFKAS • • MATT HURT Dawson & Sodd, LLP State Bar No. 24032450 8333 Douglas Ave , Suite 1260 Dallas, Texas 75225 (214) 373-8181 ATTORNEYS FOR DEFENDANTS SPENCER AND CAROLYNHODGE • AGREED FINAL JUDGMENT PAGE 8 • • TRUE AND CORRECT COPY OF ORIGINAL RECORD FILED IN TARRAM I COUNTY, TEXAS: MARY LOUISE GARCIA, COUNTY CLERK i • X. It is further ORDERED, ADJUDGED and DECREED that all costs of Court related to these proceedings, but not including attorneys' fees, are hereby adjudged against Plaintiff, which costs shall be paid only to the County Clerk of Tarrant County, Texas, Xi. It is finallyORDERED, ADJUDGED and DECREED that this judgment finally disposes of all parties and all claims raised in this cause. SIGNED this day of April, 2014, JUDGE APPROVED AS TO SUBSTANCE AND FORM: CHRISTOPHER B. MOSLBY Assistant City Attorney State Bar No, 00789505 CITY OF FORT WORTH 1000 Throdunorton Street Fort Worth, Texas 76102 (811) 392-7600 (817) 392-8359 - Facsimile ATTORNEYS FOR FLIINTIFF, C TY OF FORT WORTH, TEXAS MATT HURT 4j yam' S-"i ,4+l. Dawson & Sodd, LLP State Bar No. 24032450 8333 Douglas Ave,, Suite 1260 Dallas, Texas 75225 (214) 373-8181 ATTORNEYS FOR DEFENDANTS SPENCER AND CAROLYNHODGE AGREED FINAL JUDGMENT PAGE 8 TRUE AND CORRECT COPY OF ORIGINAL RECORD FILED IN TARRANT COUNTY, TEXAS: MAPY LOUISE GARCIA, COUNTY CLERK Spencer Hodge Job No. FTWO8305-1 10/16/2009 Exhibit A, Sheet 1 of 3 • • Being 1 272 acres of land, more or less, being all of Lots 1, 30, and 31 Block 4, Diamond Hill Addition to the City of Fart Worth, Tarrant County, texaa, according to the plat recorded in Volume 388, Page 21, Plat Records, Tarrant County, Texas and being described to Spencer Hodge according to the deed recorded In Volume 8784, Page 241 Deed Records, Tarrant County Texas; and a portion of former railroad right-of-way as defined by said plat and being described to Spencer Hodge according to the deed recorded In Document Number D200247475, sald Deed Records. Said area being more particularly described by metes and bounds as follows: BEGINNING at a "Y" cut in concrete set at the southeast comer of said Lot 30, also being at the intersection of the north right-of-way line of Brennan Avenue (a 00-foot wide public right-of-way) with the west right-of-way line of Guenther Avenue (a variable width public right-of-way); (1) Thence South 75°38'41" West, along the south line of said Lot 30 and along• said north right-of-way, passing the southwest comer of said tot at 153.31 feat same being the southeast comer of aforesaid Lot 31, and continuing along said right- of-way and the south Irne of sald Lot 31 In all 303.31 feet to a 6/8 Inch Iron rod with a yellow plastic cap stamped 'T'NP'set at the southwest comer of said Lot 31 same being In the east line of a 20-foot wide alley according to aforementioned plat; • (2) Thence North 01'42'5i° East, leaving said right-of-way, along the common line of said Lot 31 and said alley, a distance of 53,90 feet to a 518 inch Iron rod with a yellow piastl° cap stamped "TNP" set at the northwest corner of said Lot 31, same being in the south line of aforementioned former railroad right -of --way (Hodge tract, D200247475); (3) Thence South 72'63'08" West leaving said east alley line, along said former railroad right-of-way, 21.13 feet to a 6l8 inch iron rod with a yellow piasttc cap stamped 'TV" set at the northeast corner of aforementioned Lot 1, also being in the west line of said alley; (4) Thence South 01°42'51" West, leaving said former railroad right-of-way, along said west alley line and the east One of said Lot 1 a distance of 52 85 feet to a 5/8 inch iron rod with a yellow plastic cap stamped °TNP" set at the southeast comer of said Lot 1, same being in the aforementioned Brennan Avenue north right -of --way; (5) Thence South 76°36'41w West, abng the south line of said Lot 1 and said right- of-way, a distance of 130.10•feet to a 518 Inch iron rod with a yellow plastic cap stamped "TNP" set at the southwest corner of said Lot 1, same being at the intersection of the east right-of-way Tine of Peak Street (a 80-foot wide public right of way) with said Brennan north rightof-way; (5) Thence North 01°42'61" East, along said Peak Street right-of-way and the west —--Ilneaf-said Lot 1, passing.an-`X' cut tn. concrete, set al the northwest comer of. said Lot 1 at 46.31 feat same being in the aforementioned former railroad south right-of-way, and continuing along said Peak Street east tine, in ail 116.04 feet to a 5/8 Inch iron rod with a yellow plastic cap stamped 'MP* set at the southwest comer of Lot 2, saki Block 4, same being in the north lino of aforementioned former railroad right -of way; (7) Thence North 72'63'08" East, leaving said Peak Street east line, along said former railroad north right-of-way and along the south line or said Lot 2, passing the southeast corner, of said lot at 132.07 feet, same being the west line of a 20- foot wide alley according to the aforementioned plat, passing the southwest Corner of Lot 20, said Block 4, same being the east tine of said alley at 21.13 • 2A4N2024tiINPW2Wo5200-f\Doc25odgc.don • • ‘‘A �r TRUE AND CORRECT COPY OF ORIGINALRECORD FILED IN 442223T COUNTY, TEXAS: WRY LOUiSE GARCiA, COUNTY CLERK • • • it • • • • • Spencer Hodge Job No. FTW08305.1 1Ott 5/2009 Exhibit A, Sheet 2 of 3 feet continuing along said north right-of-way and along the south tine of said Lot 29 passing the southeast Garner of said lot at 289.83 feet, same being In the aforementioned west line of Guenther Avenue, and continuing in all, 473.64 feet to the centerline of said Guenther Avenue; • (8) Thence South 05'38'26' East, along saki centerline, 87.35 feet; (9) Thence South 72°53 084 West, leaving said centerline, 30.81 feet to a "P1C' nail set at the northeast comer of aforementioned Lot 30, same being in the aforementioned west tlne of Guenther Avenue; (10) Thence South 05°3828' East, along the east line of said Lot 30 and said Guenther Avenue, 88.78 feet to the PLACE OF BEGINNING and containing 1.272 acres of tend total, less 0.040 of an acre In right-of-way, leaving 1.228 acres of land net, more or less. • • NOTE Bearings are based on the Texas State Plane Coordinate System, North Central Zone (NAP 83) using a GPS network, with ,directional umbel monuments shown on the attached map. NOTE: Integral parts of this survey: I Legal description, sheet Nos, 1 and 2 dl Map, sheet No, 3 Prepared from survey performed In the month of August -October 2009. RI gky L. Gentry, R.P.LS. Texas Registration No. 6519 Date; /e //4/09 • • • • C;1A.C20441110117 105200-1T OC\Ho de.doa • • • • • TRUE AND CORRECT OF ORGINALRECORDFILED COPY TARRANT COUNTY, TEXAS MARY LOUISE GARCIA, COUNT1 CLERK 1 SCALE 1~+50• FEET we'onF RPLS 1540 31 BLOCK 3 BLOCK 3 32 BLOCK 2 15 its R 1 tverer 76 r SCUT - COI R-O-W 57 57516-4111 6 1<' are„..-1/2 (RF L ' 14 13 12 BLOCK 4 w II* 2 eft appeD,C11 oA9 02141--15 st CJT cKC 241 g+ e va- Alum*41110 `MOWS Pt' tee"'' /\ 3/4' ,PF OTNEMETE Mp t FNO. DAMAGED . 8 BLOCK 16 BLOCK 17 •r fiH b 1(.i t 47a�e n5 S3R'YEYED CPI THE GROUND MONTHS OF AICUsT-OCTOBER 200a -A 4. L knit R.P.L.S. =MTRARCH NO. SST9 CALM: to f IJ/05 sta BL Sid C 5/e'a N� �aV.- k BLOCK 4 22 WzgariA mot- if g'194• r M 30 �"` CK 4 tax Eva 0 T.272 ACRES TOTAL LESS 0.046 ACRE IN R-0-W LEAWES 1.226 ACRES NET NOIE.k i MEMaNG3 ARE USCG ON DIE TOLLS STATE PUKE STS?EY, NORTH CENTRAL ZONE (WAD e3) ISO A NETNORC, TOM INIZCflcNAL CONTROL AIOHU/AEFFIS 2. D(IEUW. PARTS CP IRS SlAYET; A. LEGAL LE56i1PT1CN. SLEET SC. 1 AND 2 E. MAP, SFFET NC. 3 3; ALL 5/a RCN NODS SET NAPE A TELLOW PLASTIC STAWm m Pkg- A xAY ocr-pr Aro- PI snorts R-O.-W rarseSTE QL14' MAP SNOWING 1.272 ACRES, SITUATEDBLOCK 4 1N DIAMOND HILL AN ADDITION TO 77-F ant OF FORT WOR771, TARRANT COUN7Y, 7EXAS m J ocic GoctesSt:ssP� 0 GUGIDIKATE GAS SKEWS HEREOM. CAP ter--- 1jrw ;TEAGUE NALL AND PERKINS E14GmNEERSsSLR .EYORS ♦ CONSUULTANTS I I O D Y A C D N"..."1-Tit i E T FOAT WORTH, TCWAS >61Of 1 1 (! 1 7) 3 3 1- 5 7 7 3 33B NO. FT4os305-1 C:VICLO04\T P pvm5200-nDWG*ODaDWG. 91¢T N0. 3 OF 3 1 Exxchange: Authorized Users Only Page 1 of 1 Document Receipt Information Reference Number: 4623 Hodge Judgment - Judgment Instrument Number: 1D214084923 No of Pages: 12 Recorded Date: 14/28/2014 3:33:13 PM County: !Tarrant Volume. I Page: I Recording Fee: I$60.00 https://www_erxchange.com/UINiewReceipt.aspx?Documentld=8542660 4/28/2014 Page 1 of 2 Mary Louise Garcia Electronically Recorded Official Public Records Tarrant County 5/2/2014 11:34 AM D214089293 AFAFKME9F LIS PENDIS ?1OTIC10.00 Submitter: XEROX COMMERCIAL SOLUTIONS Date: April 30, 2014 Executed by: City of Fort Worth Recorded in: Document No. D210174785 Deed Records of Tarrant County, Texas Property (including any improvements): a 1.272 tract or parcel of land situated in Fort Worth, Tarrant County, Texas, described as all of Lots 1, 30 and 31, Block 4, Diamond Hill Addition to the City of Fort Worth, Tarrant County, Texas, according to the plat recorded in Volume 388, Page 21, Plat Records, Tarrant County, Texas, and being described according to the Deed to Spencer Hodge recorded in Volume 8784, Page 241, Deed Records, Tarrant County, Texas, and a portion of former railroad right-of-way as defined by said plat and being described to Spencer Hodge according to the deed recorded in Document Number D200247475, Deed Records, Tarrant County, Texas, and as particularly described in the pleadings m the lawsuit numbered 10-83274-2 and styled City of Fort Worth v. Spencer Hodge and Wife, Carolyn Hodge. For valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City of Fort Worth hereby releases the property from the Lis Pendens Notice. 1-o xecuted this 30th day of April, 2014. By: Spencer Hodge v. CFW (DOE 4623 / Parcel 554) Release of Lis Pendens Notice CITY OF FORT WORTH ristopher B. Mosley Senior Assistant City Attorney Page 1 of 2 Page 2 of 2 STATE OF TEXAS COUNTY OF TARRANT This instrument was acknowledged before me on the 301h day of April, 2014, by Christopher B. Mosley, as Senior Assistant City Attorney of the City of Fort Worth, on behalf of the City. 1114A' Cas+ i rabS I 1 4 TERESA M JOHNSON My Commission Expires April 24, 2016 AFTER RECORDING RETURN TO: Christopher B. Mosley City Attorney's Office City of Fort Worth 1000 Throckmorton Street Fort Worth, Texas 76102 Nota/y Public in aid kr) The State of Texas Spencer Hodge v. CFW (DOE 4623 / Parcel 554) Page 2 of 2 Release of Lis Pendens Notice 6/3/2014 M&C Review U CIL COUNCIL ACTION: Approved on 3/4/2014 FORT ORTII DATE 3/4/2014 REFERENCE NO.: **L-15664 LOG NAME• 12HODGE SETTLEMENT CODE L TYPE. CONSENT PUBLIC HEARING: NO S UBJECT: Approve Settlement of Lawsuit Entitled City of Fort Worth v. Spencer Hodge, et al, Cause No. 2010-083274-2 in the Amount of $430,000 00 to Acquire Property Interests for Lebow Channel Drainage Project (COUNCIL DISTRICT 2) RECOMMENDATION: It is recommended that the City Council approve the settlement of all claims arising from the eminent domain lawsuit the City filed to acquire property interests for the Lebow Channel Drainage Project in the amount of $430,000.00 plus closing costs not to exceed the amount of $12,000.00, and authorize relocation expenses under the Property Code. DISCUSSION: The City authorized condemnation proceedings against the Hodges, in Mayor and Council Communication L-15337 to acquire a 0.462 acre tract to be used in connection with the Lebow Channel Drainage Project. The property is located at 1609 Brennan, Lots 22D1 and 30-31 of the Diamond Hill Addition, City of Fort Worth, Tarrant County, Texas The property is currently used by the owner as business property. The owner and the City agree that it benefits both parties for the City to acquire the entire tract. The owner will relocate his business and the City will use the property during construction. After the project is complete the City will have the option to sell the portion of the property that is not needed for the project The parties have agreed that $430,000.00 is fair compensation for the entire 1 226 acre tract. Closing costs will not exceed the amount of $12,000.00. This project is located in COUNCIL DISTRICT 2, Mapsco 62H. FISCAL INFORMATION/CERTIFICATION. The Financial Management Services Director certifies that upon approval of the above recommendation funds will be available in the current capital budget, as appropriated, in the Stormwater Capital Projects Bond Fund. TO Fund/Account/Centers FROM Fund/Account/Centers P227 541100 202280008441 $442,000.00 S ubmitted for City Manaaerts Office by: Fernando Costa (6122) O riainatina Department Head: Sarah Fullenwider (7606) Additional Information Contact: Chris Mosley (7603) http.//apps.cfmmet.org/councitfiacket/rno_remewasp?ID 19536&councildate=3/4/2014 1/2 6/3/2014 M&C Renew ATTACHMENTS 12HODGESETTLEMENT.adf http://apps.cfwnet.org/council_packet/mc_rem ew.asp?ID=19536&councildate=3/4/2014 2/2 ai ALAMO TITLE INSURANCE Policy No.: 3339843-TX--SPC-1-AT0000016321 File No : ALDAL18-AT0000016321 OWNER'S POLICY OF TITLE INSURANCE (T-1) Issued by Alamo Title Insurance Any notice of claim and any other notice or statement in writing required to be given the Company under this P olicy must be given to the Company at the address shown in Section 18 of the Conditions. COVERED RISKS S UBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN S CHEDULE B, AND THE CONDITIONS, ALAMO TITLE INSURANCE 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. 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. Owner's Policy T-1 Jacket (Covered Risks) (2014) FATX0715 rdw Policy No : 3339843-TX--SPC-1-AT0000016321 File No : ALDAL18-AT0000016321 OWNER'S POLICY OF TITLE INSURANCE (T-1) (continued) 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 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 will 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. Alamo Title Company • Authorized Countersignature FDTX0715 rdw Alamo Title Insurance '�- Prookl a ttt BVnrotnry Owner's Policy T-1 Jacket (Covered Risks) (2014) ALAMO TITLE INSURANCE OWNER POLICY OF TITLE INSURANCE T-1 SCHEDULE A File Number: ALDAL18-AT0000016321 Policy Number 3339843-7X--SPC-1-AT0000016321 Amount of Insurance: $ 430,000 00 Premium. $ 2,703.00 DATE OF POLICY: April 28, 2014 at 03:33 PM 1. Name of Insured. City of Fort Worth, a municipal corporation 2. The estate or interest in the Land that is covered by this policy Is: Fee simple estate, subject to, and the Company does not insure title to, and excepts from the description of the land, coal, lignite, oil, gas and other minerals in, under and that may be produced from the land, together with all rights, privileges, and immunities relating thereto. 3 Title is insured as vested in: City of Fort Worth, a municipal corporation 4 The land referred to in this policy is described as follows: SEE LEGAL DESCRIPTION ATTACHED HERETO FDTX0717rdw Owner's PolicyT-1 (Schedule A) (2014) Spencer Hodge Job No, FTW06305-1 10/15/2009 Exhibit A, Sheet 1 of 3 Being 1.272 acres of land, more or Less, being all of Lots 1, 30, and 31, Block 4, Diamond Hill Addition to the City of Fort Worth, Tarrant County, Texas, according to the plat recorded In Volume 388, Page 21, Plat Records, Tarrant County, Texas, and being described to Spencer Hodge according to the deed recorded In Volume 8784 Page 241 Deed Records Tarrant County Texas; and a portion of forrner railroad right-of-way as defined by said plat and being described to Spencer Hodge according to the deed recorded in Document Number D200247475, said Deed Records, Said area being more particularly descnbed by metes and bounds as follows: BEGINNING at a "Y" cut in concrete, set at the southeast comer of said Lot 30, also being at the Intersection of the north right-of-way line of Brennan Avenue (a 60-foot wide public right-of-way) with the west nght-of-way line of Guenther Avenue (a variable width public fight -of -way); (1) Thence South 75°36'41" West, along the south line of said Lot 30 and along said north right-of-way, passing the southwest comer of said lot at 153,31 feet same being the southeast comer of aforesaid Lot 31, and continuing along said right- of-way and the south line of said Lot 31 In all 303.31 feet to a 5/8 inch iron rod with a yellow plastic cap stamped 'TNP' pet at the southwest corner of said Lot 31 same being in the east tine of a 20-foot wide alley according to aforementioned plat; (2) Thence North 01°42'51' East, leaving said right-of-way, along the common tine of said Lot 31 and said alley, a distance of 53.90 feet to a 5/8 inch Iron rod with a yellow plastic cap stamped "TNP" set at the northwest corner of said Lot 31, same being in the south line of aforementioned former railroad right-of-way (Hodge tract D200247475); (3) Thence South 72°53'08u West leaving said east alley fine, along said former railroad nght-of-way, 21413 feet to a 5/8 Inch iron rod with a yellow plastic cap stamped 'TNP" set at the northeast corner of aforementioned Lot 1, also being In the west line of said alley; (4) Thence South 01°42'51° West, leaving said former railroad right-of-way, along said west alley line and the east line of said Lot 1 a distance of 52 85 feet to a 5/8 inch Iran rod with a yellow plastic cap stamped "TNP" set at the southeast comer of said Lot 1, same being in the aforementioned Brennan Avenue north right-of-way; (5) Thence South 75°36141" West, along the south line of said Lot 1 and said right- of-way, a distance of 130.10 feet to a 5/8 inch iron rod with a yellow plastic cap stamped 'TNP" set at the southwest corner of said Lot 1, same being at the intersection of the east right-of-way line of Peak Street (a 60-foot wide public right of way) with said Brennan north right-of-way; (6) Thence North 01°42'S1° East, along said Peak Street right-of-way and the west —tine-of-said Lot 1, passing -an IX" cut in concrete, set at the northwest comer of said Lot 1 at 46.31 foot same being in the aforementioned former railroad south right-of-way, and continuing along said Peak Street east line, in all 116.04 feet to a 5/8 inch Iron rod with a yellow plastic cap stamped "TNP' set at the southwest corner of Lot 2, said Block 4, same being In the north line of aforementioned former railroad right-of-way; (7) Thence North 72°53'08" East leaving said Peak Street east line along said former railroad north right-of-way and along the south line of said Lot 2, passing the southeast corner of said lot at 132.07 feet, same being the west line of a 20- foot wide alley according to the aforementioned plat, passing the southwest comer of Lot 29, said Block 4, same being the east line of said alley at 21.13 C.1A.C20041TNPWTW05200-1\DOC\Hodge,doc " A " Spencer Hodge Job No. FTW06305-1 10/15/2009 Exhibit A, Sheet 2 of 3 feet; continuing along said north right-of-way and along the south line of said Lot 29 passing the southeast corner of said lot at 289.83 feet, same being in the aforementioned west line of Guenther Avenue, and continuing In all, 473.64 feet to the centerline of said Guenther Avenue; (8) Thence South 05°36'26" East, along said centerline, 67.35 feet, (9) Thence South 72°53'08° West, leaving said centerline, 30-61 feet to a "PK" nail set at the northeast corner of aforementioned Lot 30, same being in the aforementioned west line of Guenther Avenue; (10) Thence South 05°38'28" East, along the east line of said Lot 30 and said Guenther Avenue, 66.78 feet to the PLACE OF BEGINNING and containing 1.272 acres of land total, less 0.048 of an acre In right-of-way, leaving 1.226 acres of land net, more or less. NOTE: Bearings are based on the Texas State Plane Coordinate System, North Central Zone (NAI:) 83) using a GPS network, with directional control monuments shown on the attached map. NOTE: Integral parts of this survey: I. Legal description, sheet Nos, 1 and 2 II. Map, sheet No. 3 Prepared from survoy performed in the month of August-October2009.. RI cj(cy L. Gentry, RP L.S. Texas Registrat on N . 5519 Date: I0 / /6/0 WIPP C:\AC20041TNP\TT W05200-1\DOC\Hodge.doc 1 SCALE 1-=50' FEET 5/S CIRF RPLS 1840 30 31 BLOCK 3 BLOCK 3 co r w ist J Ct. li Netrt7briv sa.zr 00' R-O -VI .Y7 Q 600 s r 1/ n i f H _,092D O 32 /� _ r' a0D sEr 8 $1111AMPa) 'fNP BLOCK 2 r 1 '‘ 15 �7/21RF -a tit 14 13 12 BLOCK 4 2 ` o ` IpCN _25f CAP 1NP 1521 r0 cG rroCEt 3/4" IRF vSC)a-• 9334. � Y1PG. 1 41 575" Oa' CONCRETE MON7 FNO. DANA= 8 BLOCK 15 b Nts 9 N.& cAPrEP - 5r PED SURVEYED CN TEE GROUND IN 1NE MONTHS OF AUGUST-OCTOEER 2009 RI L GNTRY, R.P.LS. 1 AS REGISTRARON NO. 5519 DATE: 69 %/6r/01 D\\1' 1 O` P14'pN Q G- 2 voL- N VON- 31 2 p1,t. BRNAA 4 BLOCK 4 29 BUCK 4 CGN 11�AL •E DR 30331 re ST.41+� 040�yxrC' .- Q4 h Jo To; gzS , 80' R-O-Yw se �9a P‘AoG�41 to vOL- g wr IH a 30 rG `1/4„ _ N5T3E4 3s1 1.272 ACRES TOTAL LESS 0.046 ACRE IN R—O—W LEAVES 1.226 ACRES NET BLOCK 17 A G1-EN° N WAY 5/8'CtRF� co 1 0 S' t0'I 3, OS'SaGA GOJOEL33g8 t02. tr.P \L a 5/8••CIRF 0 MAP SHOWING 1-272 ACRES, SITUATED IN BLOCK 4 DIAMOND HILL, AN ADDI77ON TO THE CITY OF FORT WORTH, TARRANT COUN7Y, TEXAS NOTES: 1. BEARINGS ARE NAM ON THE T•XXAS STATE PLANE COORDINATE ,Tyl_M. NORTH CENTRAL ZONE (NAD 83) USINO A CPS NETWORK, m1H DIRECTIONAL. CONTROL 116NU4.ENTS SHOWN HEREON. 2 INTEGRAL PARTS OF THIS SURVEY: A. LECAI DESCRIPTION. SHEET NO. 1 AND 2 S. uWP, SHEET NO. 3 3. A,L 5/8" IRON RODS SET HAVE A YELLOW PLASTIC CAP STAMPW /NC 1 T EAGUE NALL AND PERKINS M01NEERS a SURVEYORS .4 CONSULTANTS .4.41..4-"'t/21RF 1 1 O 0 M A CON STREET roRr WORrn, Tf X45 76t02 (017)335-5773 e \Ag044\TNP s2DO-1\0vc\H0D4.Owc. 408 NO. FlW0S305-1 SHEET NO. 1 OF 3 Policy No.: 3339843-TX--SPC-1-AT0000016321 File No.: ALDAL18-AT0000016321 SCHEDULE B EXCEPTIONS FROM COVERAGE This Policy does not insure against Toss or damage (and the Company will not pay costs, attorney's fees or expenses) that arise by reason of the terms and conditions of the leases and easements, if any, shown in Schedule A and the following matters: Deleted, 2 Shortages in area. 3 Homestead or community property or survivorship rights, if any, of any spouse of any insured. (Applies to the Owner Policy only ) 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 rights of access to that area or easement along and across that area (Applies to the Owner Policy only.) 5 Standby fees, taxes, and assessments by any taxing authority for the year 2014, 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. 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.): Terms, condtions and stipulations contained in Notice Establishing the Fort Worth Public Improvement District No. 11 dated March 10, 2003, recorded in Volume 16492 Deed Records, Tarrant County, Texas. b. Terms, Conditions and Stipulations contained in Oil, Gas and Mineral Lease dated June 7, 2006, recorded under Clerk's File No. D206201888, Deed Records, Tarrant County, Texas, by and between Spencer Hodge, as Lessor, and Dale Resources L.L.C., as Lessee. (Tract 1) An oil and gas lease for the term therein provided with certain covenants, conditions and provisions, together with easements if any, as set forth therein. Dated: August 21, 2006 Lessor Union Pacific Railroad Company Lessee: Dale Resources, L,L C. Recording Date: October 4, 2006 Recording No: under Clerk's File No. D206311779, Deed Records, Tarrant County, Texas. (Tract 2) FOTX0718 rdw Owner's Policy T-1 (Schedule B) (2014) Policy No.: 3339843-TX--SPC-1-AT0000016321 File No.: ALDAL 18-AT0000016321 SCHEDULE B (continued) Interest in and to oil, gas and other minerals and/or royalties, bonuses, rentals and all other rights relating thereto as set forth in the document Recording No : in Volume 14593, Page 155, Deed Records, Tarrant County, Texas Said mineral interest not traced subsequent to the date of the above -cited instrument. (Tract 2) A lease with certain terms, covenants, conditions and provisions set forth therein_ Dated: January 22, 2010 Lessor: Spencer Hodge Lessee: Dale Property Services, LLC Recording Date: February 1, 2011 Recording No: under Clerk's File No. D210022613, Real Property Records, Tarrant County, Texas. Affects Tract 1 f. Section 14 of the Conditions of this policy is hereby deleted, FDTX071S rdw Owner's Policy T-1 (Schedule B) (2014) Policy No.: 3339843-TX--SPC-1-AT0000016321 File No. ALDAL18-AT0000016321 EXCLUSIONS FROM COVERAGE 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 that arise by reason of; 1 (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any Improvement erected on the Land; (iii) subdivision of land; or (iv) environmental protection' or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5 (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6 Rights of eminent domain, This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 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 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 (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is: (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5 Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer In the Public Records that vests Title as shown in Schedule A. 6 The refusal of arty person to purchase, lease or lend money on the estate or interest covered hereby in the land described in Schedule A because of Unmarketable Title. FDTX0716 rdw Owner's Policy T-1 Jacket (Exclusions from Coverage) (2014) Policy No : 3339843-TX--SPC-i-AT0000016321 File No.. ALDAL18-AT0000016321 CONDITIONS DEFINITION OF TERMS. The following terms when used in this policy mean: (a) Amount of Insurance": the amount stated in Schedule A, as may be increased or decreased by endorsement to this policy, increased by Section 8(b), or decreased by Sections 10 and 11 of these Conditions. (b) "Date of Policy": The date designated as "Date of Policy" in Schedule A. (c) "Entity": A corporation, partnership, trust, limited liability company, or other similar legal entity. (d) "Insured": The Insured named in Schedule A. (i) The term "insured" also includes (A) successors to the Title of the Insured by operation of law as distinguished from purchase, including heirs devisees survivors, personal representatives or next of kin; (B) successors to an Insured by dissolution, merger, consolidation, distribution, or reorganization; (C) successors to an Insured by its conversion to another kind of Entity; (D) a grantee of an Insured under a deed delivered without payment of actual valuable consideration conveying the Title; (1) If the stock, shares memberships, or other equity interests of the grantee are wholly -owned by the named Insured, (2) if the grantee wholly owns the named Insured, (3) If the grantee is wholly -owned by an affiliated Entity of the named insured, provided the affiliated Entity and the named Insured are both wholly -owned by the same person or Entity, or (4) If the grantee is a trustee or beneficiary of a trust created by a written instrument established by the Insured named in Schedule A for estate planning purposes, (ii) With regard to (A), (B), (C), and (D) reserving, however, all nghts and defenses as to any successor that the Company would have had against any predecessor Insured. (e) "Insured Claimant": An Insured claiming loss or damage (f) "Knowledge" or "Known": actual knowledge, not constructive knowledge or notice that may be imputed to an Insured by reason of the Public Records or any other records that impart constructive notice of matters affecting the Title. (g) "Land": the land described to Schedule A, and affixed improvements that by law constitute real property. The term 'Land" does not include any property beyond the lines of the area described in Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but this does not modify or limit the extent that a right of access to and from the Land is insured by this policy. (h) 'Mortgage". mortgage, deed of trust, trust deed, or other security instrument, including one evidenced by electronic means authorized by law. (i) "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 Covered Risk 5(d), "Public Records" shall also include environmental protection liens filed in the records of the clerk of the United States District Court for the district where the Land is located. (j) "Title": the estate or interest described in Schedule A (k) "Unmarketable Title": Title affected by an alleged or apparent matter that would permit a prospective purchaser or lessee of the Title or lender on the Title to be released from the obligation to purchase, lease or lend if there is a contractual condition requiring the delivery of marketable title FDTX0726 rdw Owner's Policy T-1 Jacket (Conditions) (2014) Policy No.: 3339843-TX--SPC-1-AT0000016321 File No. ALDAL18-AT0000016321 CONDITIONS (Continued) 2. CONTINUATION OF INSURANCE. The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation 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 warranties in any transfer or conveyance of the Title. 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 obligation 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 5(a) 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, as insured, and that might cause loss or damage for which the Company may be liable by virtue of this policy. if the Company is prejudiced by the failure of the Insured Claimant to provide prompt notice, the Company's liability to the Insured Claimant under the policy shall be reduced 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 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 or other matter 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 Insured s 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 the Company concludes that the lien encumbrance, adverse claim or defect is valid, the Company shall take one of the following actions: (i) institute the necessary proceedings to clear the lien, encumbrance, adverse claim or defect from the Title as insured; (11) indemnify the Insured as provided in this policy; (iii) upon payment of appropriate premium and charges therefore, 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 Land or, if a loan policy, the amount of the loan; (iv) indemnify another title insurance company in connection with its issuance of a policy(ies) 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. PROOF OF LOSS In the event the Company is unable to determine the amount of Toss or damage, the Company may at its option, require as a condition of payment that the Insured Claimant furnish a signed proof of loss. The proof of loss must describe the defect lien encumbrance 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. 5. DEFENSE AND PROSECUTION OF ACTIONS. (a) Upon written request by the Insured, and subject to the options contained in Sections 3 and 7 of these Conditions 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 covered by this policy adverse to the Insured. This obligation is limited to only those stated causes of action alleging matters 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. It 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. FDTX0726 rdw Owner's Policy T-1 .jacket (Conditions) (2014) Policy No : 3339843 TX SPC-1-AT0000016321 File No. ALDAL18-AT0000016321 CONDITIONS (Continued) (b) The Company shall have the right, in addition to the options contained in Sections 3 and 7, 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, 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 to the Insured. The exercise of these rights shall not be an admission of liability or waiver of any provision of this policy, If the Company exercises its rights under this subsection, it must do so diligently. (c) Whenever the Company brings an action or asserts a defense as required or permitted by this policy, the Company may pursue the litigation to a final determination by a court of competent jurisdiction and it expressly reserves the right in its sole discretion, to appeal from any adverse judgment or order. 6. DUTY OF INSURED CLAIMANT TO COOPERATE, (a) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding and any appeals, the insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, including the right to use, at its 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 reasonable aid (i) in securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, 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 or any other matter as insured. If the Company is prejudiced by the failure of the Insured to furnish 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 any litigation, with regard to the matter or matters requiring such cooperation. (b) The Company may reasonably require the Insured Claimant to submit to examination under oath by any authorized representative of the Company and to produce for examination, inspection and copying, at such reasonable times and places as may be designated by the authorized representative of the Company, all records, in whatever medium maintained, including books, ledgers, checks, memoranda, correspondence, reports, e-mails, disks, tapes, and videos whether bearing a date before or after Date of Policy, that 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 to examine, inspect and copy all of these records in the custody or control of a third party that 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 judgment of the Company, it is necessary in the administration of the claim. Failure of the Insured Claimant to submit for examination under oath, produce any reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this subsection unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that claim 7. 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 that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay. Upon the exercise by the Company of this option all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in this subsection, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. FDTX0726rdw Owner's Policy T-1 Jacket (Conditions) (2014) Policy No: 3339843-TX--SPC-1-AT0000016321 File No. ALDAL18-AT0000016321 CONDITIONS (Continued) (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. In addition, the Company will pay any costs, attorneys' fees and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay, or (1!) to pay or otherwise settle with the Insured Claimant the Toss or damage provided for under this policy, together with any costs attorneys' fees and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in subsections (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 to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation DETERMINATION AND EXTENT OF LIABILITY. 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.. (a) The extent of liability of the Company for loss or damage under this policy shall not exceed the lesser of: (I) the Amount of Insurance; or (ii) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this policy If the Company pursues its rights under Section 3 or 5 and is unsuccessful in establishing the Title, as insured, (i) the Amount of Insurance shall be increased by 10%, and (ii) the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as of the date it is settled and paid. In addition to the extent of liability under (a) and (b), the Company will also pay those costs, attorneys' fees, and expenses incurred in accordance with Sections 5 and 7 of these Conditions 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 as insured, or takes action in accordance with Section 3 or 7, in a reasonably diligent manner by any method, including litigation and the completion of any appeals, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused to the Insured (b) In the event of any litigation, including litigation by the 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, adverse to the Title, as insured. (c) The Company shall not be liable for loss or damage to the 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, attorneys' fees and expenses, shall reduce the Amount of Insurance by the amount of the payment. 11. LIABILITY NONCUMULATIVE The Amount of Insurance shall be reduced by any amount the Company pays 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 executed by an Insured after Date of Policy and which is a charge or lien on the Title, and the amount so paid shall be deemed a payment to the Insured under this policy. (b) (c) FDTX0726 rdw Owner's Policy T-1 Jacket (Conditions) (2014) Policy No .: 3339843-TX--SPC-1-AT0000016321 File No. ALDAL18 AT0000016321 CONDITIONS (Continued) 12. PAYMENT OF LOSS. When liability and the extent of loss or damage have been definitely fixed in accordance with these Conditions, the payment shall be made within 30 days 13. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT. (a) Whenever the Company shall have settled and paid a claim under this policy, it shall be subrogated and entitled to the rights of the Insured Claimant in the Title and all other rights and remedies in respect to the claim that the Insured Claimant has against any person or property, to the extent of the amount of any loss, costs, attorneys' fees and expenses paid by the Company. If requested by the Company, the Insured Claimant shall execute documents to evidence the transfer to the Company of these rights and remedies. 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 and remedies. If a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company shall defer the exercise of its right to recover until after the Insured Claimant shall have recovered its loss. (b) The Company's right of subrogation includes the rights of the Insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments that address subrogation rights. 14. ARBITRATION. Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association (' Rules") Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. 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 in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured, unless the Insured is an individual person (as distinguished from an Entity). All arbitrable matters when the Amount of Insurance is in excess of $2 000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties_ Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction. 15, LIABILITY LIMITED TO THIS POLICY POLICY ENTIRE CONTRACT (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. (b) Any claim of loss or damage that arises out of the status of the Title or by any action asserting such claim shall be restricted to this policy. (c) Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person, or expressly incorporated by Schedule A of this policy. (d) Each endorsement to this policy issued at any time is made a part of this policy and is subject to all of its terms and provisions. Except as the endorsement expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy or (iv) increase the Amount of Insurance. Each Commitment, endorsement or other form or provision in the Schedules to this policy that refers to a term defined in Section 1 of the Conditions shall be deemed to refer to the term regardless of whether the term is capitalized in the Commitment endorsement or other form, or Schedule. Each Commitment, endorsement or other form, or provision in the Schedules that refers to the Conditions and Stipulations shall be deemed to refer to the Conditions of this policy. FDTX0726 rdw Owner's Policy T-1 Jacket (Conditions) (2014) Policy No.: 3339843-TX--SPC-1-AT0000016321 File No. ALDAL18-AT0000016321 CONDITIONS (Continued) 16. SEVERABILITY In the event any provision of this policy, in whole or in part, is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision or such part held to be invalid and all other provisions shall remain in full force and effect. 17. CHOICE OF LAW; FORUM. (a) Choice of Law: The Insured acknowledges the Company has underwritten the risks covered by this policy and determined the premium charged therefor in reliance upon the law affecting interests in real property and applicable to the interpretation rights, remedies or enforcement of policies of title insurance of the jurisdiction where the Land is located. Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims against the Title that are adverse to the Insured and in interpreting and enforcing the terms of this policy. In neither case shall the court or arbitrator apply its conflicts of laws principles to determine the applicable law. (b) Choice of Forum, Any litigation or other proceeding brought by the Insured against the Company must be filed only in a state or federal court within the United States of America or its territories having appropriate jurisdiction 18. NOTICES, WHERE SENT. Any notice of claim and any other notice or statement in writing required to be given to the Company under this policy must be given to the Company at PO Box 45023, Jacksonville, FL 32232-5023. FDTX0726 rdw Owner's Policy T-1 Jacket (Conditions) (2014) IMPORTANT NOTICE To obtain information or make a complaint: You may call Alamo Title Insurance's toll -free telephone number for information or to make a complaint at: 800-654-7041 You may also write to Alamo Title Insurance at: Attention: Claims Department P O. Box 45023 Jacksonville, FL 32232-5023 You may contact the Texas Department of Insurance to obtain information on companies, coverages rights or complaints at: 800-252-3439 You may write to the Texas Department of Insurance: PO Box 149104 Austin, TX 78714 512-475-1771 Web: htto://www.tdi.tcxas.trov E-mail: ConsumerProtcction@.tdi.tcxas goy PREMIUM OR CLAIM DISPUTES: Should you have a dispute concerning your premium or about a claim you should contact the company first. If the dispute Is not resolved, you may contact the Texas Department of Insurance. ATTACH THIS NOTICE TO YOUR POLICY: This notice is for information only and does not become a part or condition of the attached document. FDTX0830rdw AVISO IMPORTANTE Para obtener informacion o para someter una queja: Usted puede Ilamar al numero de telefono gratis Compania de Sequros de Titulo de Alamo Title Insurance's para informacion o para someter una queja al: 800-654 7041 Usted tambien puede escribir a Compania Seguros de Titulo de Alamo Title Insurance: Attention: Claims Department P.O Box 45023 Jacksonville, FL 32232-5023 Puede comunicarse con el Departamento de Seguros de Texas para obtener Informacion acerca de companies, coberturas, derechos o quejas al: 800-252-3439 Puede escribir al Departmento de Seguros de Texas: PO Box 149104 Austin, TX 78714 512-475-1771 Web: httn://www.tdi.tcxas.eov E-mail: ConsumcrProtection @ tdi.texas.eov DISPUTAS SOME PRIMAS 0 RECLAMOS: Si Ilene una disputa concerniente a su prima o a un reclamo, debe comunlcarse con la compania primero. Si no se resuelve fa disputa, puede entonces comunicarse con el departamento (TDI) UNA ESTE AVISO A SU POLIZA: Este aviso es solo para proposito de Informacion y no se convierte en parte o condition del documento adjunto Important Notice Effective 1/3/2014