Owner's Policy No. 5011400-1166403e, Insured Orange County, for 4801 West Ten Rd., Efland, NC

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Policy#: 5011400-1166403e CONDITIONS 1. DEFINITION OF TERMS of matters relating to real property to purchasers for value and The following terms when used in this policy mean: without Knowledge. With respect to Covered Risk 5(d), (a) "Amount of Insurance": The amount stated in Schedule A,as may "Public Records"shall also include environmental protection be increased or decreased by endorsement to this policy, liens filed in the records of the clerk of the United States District increased by Section 8(b),or decreased by Sections 10 and 11 of Court for the district where the Land is located. these Conditions. (j) "Title": The estate or interest described in Schedule A. (b) "Date of Policy": The date designated as"Date of Policy"in (k) "Unmarketable Title":Title affected by an alleged or apparent Schedule A. matter that would permit a prospective purchaser or lessee of (c) "Entity": A corporation,partnership,trust,limited liability the Title or lender on the Title to be released from the company,or other similar legal entity. obligation to purchase,lease,or lend if there is a contractual (d) "Insured": The Insured named in Schedule A. condition requiring the delivery of marketable title. (i) The term"Insured"also includes 2. CONTINUATION OF INSURANCE (A) successors to the Title of the Insured by operation of law The coverage of this policy shall continue in force as of Date of as distinguished from purchase,including heirs,devisees, Policy in favor of an Insured,but only so long as the Insured retains survivors,personal representatives,or next of kin; an estate or interest in the Land,or holds an obligation secured by a (B)successors to an Insured by dissolution,merger, purchase money Mortgage given by a purchaser from the Insured, consolidation,distribution,or reorganization; or only so long as the Insured shall have liability by reason of (C) successors to an Insured by its conversion to another kind warranties in any transfer or conveyance of the Title. This policy of Entity; shall not continue in force in favor of any purchaser from the (D)a grantee of an Insured under a deed delivered without Insured of either(i)an estate or interest in the Land,or(ii)an payment of actual valuable consideration conveying obligation secured by a purchase money Mortgage given to the theTitle Insured. (1) if the stock,shares,memberships,or other equity 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT interests of the grantee are wholly-owned by the The Insured shall notify the Company promptly in writing(i)in case named Insured, of any litigation as set forth in Section 5(a)of these Conditions,(ii) (2) if the grantee wholly owns the named Insured, in case Knowledge shall come to an Insured hereunder of any claim (3) if the grantee is wholly-owned by an affiliated Entity of title or interest that is adverse to the Title,as insured,and that of the named Insured,provided the affiliated Entity might cause loss or damage for which the Company may be liable and the named Insured are both wholly-owned by the by virtue of this policy,or(iii)if the Title,as insured,is rejected as same person or Entity,or Unmarketable Title. If the Company is prejudiced by the failure of (4) if the grantee is a trustee or beneficiary of a trust the Insured Claimant to provide prompt notice,the Company's created by a written instrument established by the liability to the Insured Claimant under the policy shall be reduced to Insured named in Schedule A for estate planning the extent of the prejudice. purposes. 4. PROOF OF LOSS (ii) With regard to(A),(B),(C),and(D)reserving,however,all In the event the Company is unable to determine the amount of loss rights and defenses as to any successor that the Company or damage,the Company may,at its option,require as a condition would have had against any predecessor Insured. of payment that the Insured Claimant furnish a signed proof of loss. (e) "Insured Claimant": An Insured claiming loss or damage. The proof of loss must describe the defect,lien,encumbrance,or (f) "Knowledge"or"Known": Actual knowledge,not constructive other matter insured against by this policy that constitutes the basis knowledge or notice that may be imputed to an Insured by reason of loss or damage and shall state,to the extent possible,the basis of the Public Records or any other records that impart of calculating the amount of the loss or damage. constructive notice of matters affecting the Title. 5. DEFENSE AND PROSECUTION OF ACTIONS (g) "Land": The land described in Schedule A,and affixed (a) Upon written request by the Insured,and subject to the options improvements that by law constitute real property. The term contained in Section 7 of these Conditions,the Company,at its "Land"does not include any property beyond the lines of the area own cost and without unreasonable delay,shall provide for the described in Schedule A,nor any right,title,interest,estate,or defense of an Insured in litigation in which any third party easement in abutting streets,roads,avenues,alleys,lanes, asserts a claim covered by this policy adverse to the Insured. ways,or waterways,but this does not modify or limit the extent This obligation is limited to only those stated causes of action that a right of access to and from the Land is insured by this alleging matters insured against by this policy. The Company policy. shall have the right to select counsel of its choice(subject to (h) "Mortgage": Mortgage,deed of trust,trust deed,or other security the right of the Insured to object for reasonable cause)to instrument,including one evidenced by electronic means represent the Insured as to those stated causes of action. It authorized by law. shall not be liable for and will not pay the fees of any other (i) "Public Records": Records established under state statutes at counsel. The Company will not pay any fees,costs,or Date of Policy for the purpose of imparting constructive notice expenses incurred by the Insured in the defense of those causes of action that allege matters not insured against by this policy. Form 5011400(7-1-14) Page 3 of 5 ALTA Owner's Policy of Title Insurance(6-17-06)