EXHIBIT 10.29
ISSUING AGENCY CONTRACT
This Issuing Agency Contract ("Contract") is made and entered into this 8th Day
of February 2005, by and between Chicago Title Insurance Company, a Missouri
corporation ("Principal") and LSI Title Company of Oregon, LLC, an Oregon
Limited Liability Company ("Agent").
In consideration of the promises and the mutual covenants herein and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Principal and Agent agree as follows:
1. APPOINTMENT OF AGENT. Principal hereby appoints Agent as a policy issuing
agent of Principal for the sole purpose of issuing title insurance
commitments, policies, endorsements and other title assurances approved by
Principal and by all required regulatory agencies, now in existence or
hereafter developed, relating to real property located in all counties of
the State of Oregon ("geographic area") in accordance with the terms of
this Contract; provided, however that Agent will immediately cease and
refrain from issuing any policies of Principal in any portion of the
geographic area in which Principal informs Agent that Principal had, on
the date indicated above, an exclusive agency agreement with another agent
or agency. During the term of this Contract, pertaining to the geographic
area:
A. Agent shall issue title insurance commitments, policies and
endorsements of Principal and any other title insurance company;
B. Principal or its affiliates and subsidiaries shall have, and do
retain, the right to appoint other agents; and
C. Principal and its affiliates or subsidiaries shall have, and do
retain, the right to service directly any customer, and Principal or
its affiliates or subsidiaries may, without limitation, do any of
the following:
(i) issue directly, from any of its offices, or from any location
nationwide, commitments, policies, endorsements, or any other
title assurance or evidence, search or real estate information
product, or any other product whatsoever, now in existence or
hereafter developed (all of the foregoing are hereafter
collectively referred to as "Information");
(ii) purchase or otherwise obtain from any source any search data
or Information.
2. CONTRACT TERM. The term of this Contract shall be ten (10) years,
commencing on February 8, 2005; provided however that Agent shall not
issue any title insurance commitments, policies and endorsements of
Principal in any county or state in the geographic area until Agent is
duly licensed to do so by the applicable regulatory body in such state or
permitted to do so by applicable law or regulation of such state. At any
time after the initial five (5) years of this Contract, either party may
give written notice to the other of its election to terminate this
Contract with such termination to take effect at least five (5) years
after delivery of the written notice. The term of this Contract shall be
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automatically extended beyond the initial ten (10) year term until (i)
written notice is provided by either party and (ii) the term of the notice
(which shall not be less than five (5) years) has expired. Notwithstanding
the foregoing, either party hereto may terminate this Contract pursuant to
Paragraph 9 hereof. Notwithstanding anything to the contrary herein, this
Agreement shall be terminated following ninety (90) days' written request
for such termination by the Missouri Department of Insurance in the event
Principal is or has been placed under regulatory supervision.
3. DUTIES OF PRINCIPAL. Principal shall:
A. Furnish Agent forms of commitments, policies, endorsements and other
forms required for transacting Agent's title insurance business.
B. Furnish Agent guidelines and instructions for transacting Agent's
title insurance business.
C. Resolve all risk assumption questions submitted by Agent.
D. Arrange for reinsurance where required, to the extent such
reinsurance is available.
4. DUTIES OF AGENT. Agent shall:
A. Receive and process applications for title insurance in a timely,
prudent and ethical manner with due regard to recognized title
insurance underwriting practices and in accordance with Principal's
bulletins, manuals and other instructions of Principal.
B. Base each policy issued on behalf of Principal upon a determination
of insurability of title that includes
(i) a search from earliest public records or in accordance with
Principal's written instructions; and
(ii) an examination of all documents affecting title to the subject
property.
C. Supply, at Agent's expense, office space and qualified personnel for
conducting business pursuant to this Contract by the date of
execution of this Contract.
D. Prepare, preserve and maintain in Agent's possession a separate file
for each application for title insurance containing all documents
upon which Agent relied to make its determination of insurability,
including, but not limited to: affidavits, maps, plats, lien
waivers, surveys, title reports, searches, examinations, and work
sheets, together with a copy of each commitment, policy, endorsement
and other title assurance issued as well as closing statements,
disbursement worksheets, copies of all checks disbursed and
receipted, deposit slips, escrow agreements and any other
instruments or documents executed or created at Closing. Pertaining
to Agents files:
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(i) Title thereto shall remain with Agent. Upon termination of
this Contract, Agent shall allow Principal to copy, at
Principal's cost and expense, Agent's files. Agent hereby
grants to Principal the right to enter upon the premises of
Agent or other locations where such files are maintained,
during business hours, for purposes of recovering possession
thereof;
(ii) In the event Agent ceases to engage in the title insurance
business, title to such files shall vest in Principal, and
Agent shall deliver said files to Principal immediately upon
termination of this Contract. Agent hereby grants to Principal
the right to enter upon the premises of Agent or other
locations where such said files are maintained, during
business hours, for purposes of recovering possession thereof.
(iii) In the event Agent sells, transfers or conveys its title
insurance operations or any interest therein to a third party,
Principal shall have the right to copy such files, and the
right to copy shall survive any sale, transfer or encumbrance
of Agent's title insurance operations or an interest therein.
Agent hereby grants to Principal the right to enter upon the
premises of Agent or other locations where said title files
are maintained, during business hours, for purposes of making
a reproduction thereof.
E. Report to Principal, as hereafter set forth, by sending to Principal
any one of the following:
(i) a copy of each policy, endorsement and other title assurance
issued by Agent; or
(ii) a voucher containing information regarding each policy,
endorsement and other title assurance issued by Agent, as
instructed by Principal; or
(iii) information regarding each policy, endorsement and other title
assurance issued by Agent, in magnetic or electronic format,
as instructed by Principal.
F. Maintain a policy register in a form approved by Principal showing
the disposition of all policies and other pre-numbered forms
furnished by Principal. Upon request by Principal, Agent shall
furnish a statement accounting for all such forms and shall return
all spoiled, obsolete or canceled policies and forms to Principal.
Agent shall safely maintain and store all forms furnished by
Principal and hereby assumes liability for loss or damage suffered
by Principal by reason of Agent's wrongful or negligent use or
storage of such forms.
G. Provide Principal annually copies of annual financial statements of
the agency and an updated Information Affidavit, such financial
statements to be kept confidential by Principal.
H. Perform such services and render such assistance as Principal may
reasonably request in connection with any claim or litigation
arising from a commitment,
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policy, endorsement or other title assurance issued by Agent or by
Principal on behalf of Agent or on account of any conduct of Agent,
whether such claim or litigation is instituted during the term of
this Contract or following termination thereof. In addition, Agent
shall promptly forward to Principal:
(i) all documents received by Agent in which Principal is a party
to judicial proceedings;
(ii) all written complaints or inquiries made to any regulatory
agency regarding transactions involving title insurance
policies, endorsements, commitments or other title assurances
of Principal;
(iii) any information alleging a claim involving a policy,
commitment, endorsement or other title assurance of Principal
or a transaction for which Principal may be liable; and
(iv) all original documentation and work papers associated with the
transaction or conduct giving rise to any claim or complaint.
I. In those instances where Agent closes real estate transactions and
receives and disburses funds of others, Agent shall
(a) maintain said funds safely in accounts fully insured by an
agency of the Federal Government and in accordance with
applicable state laws;
(b) maintain separate from Agent's personal or operating accounts
all funds received by Agent from any source in connection with
transaction(s) in which Principal's title insurance is
involved;
(c) disburse such funds only for the purposes for which they were
entrusted;
(d) maintain an escrow ledger for each title insurance order
involving fiduciary funds, which ledger shall separately
reflect the escrow activity for each order;
(e) maintain a control account showing total fiduciary liability
for each escrow bank account; and
(f) reconcile monthly the control account and ledger records to
the monthly bank statement.
J. Comply with all applicable laws and regulations relating to the
conduct of Agent's business.
K. Comply with all bulletins, manuals and other instructions furnished
to Agent in writing, by facsimile or other electronic transmission
by Principal. If any reasonable doubt exists with regard to the
insurability or marketability of title or as to whether a particular
risk is extra-ordinary or extrahazardous, Agent shall
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contact Principal or Principal's designated underwriting counsel for
guidance and approval.
L. The parties hereto acknowledge that Agent is not an agent of
Principal for purposes of conducting a Closing, as defined in
Paragraph 7H hereof; however, because Principal may be subject to
allegations of liability for acts of Agent with regard to Agent's
settlement or escrow business, Agent shall cooperate with Principal
in the performance of audits of Agent's escrow records, accounts and
procedures. In addition, Agent agrees to provide to Principal,
within thirty (30) days following receipt, a copy of any audit
conducted by any accounting firm with respect to Agent's escrow
records, accounts or procedures.
M. Timely furnish the insured with a title insurance policy and other
title assurances Agent is obligated to issue.
N. Maintain in confidence the terms and conditions of this Contract.
O. Neither Agent nor any affiliate shall pay any commission for the
solicitation or negotiation of any services constituting the
business of title insurance, other than the payment of commissions,
incentive compensation, or bonuses with respect to full-time
salaried employees based on any such employees' level of production
of any services constituting the business of title insurance. If
Agent or, where applicable, its affiliates makes any such payments
to full-time salaried employees, Agent or affiliate shall maintain
adequate records detailing the conditions to receipt of any
commission, incentive compensation, or bonus, the recipient thereof,
and the amount paid. No employee of Agent shall, directly or
indirectly, pay or offer to pay, either directly or indirectly, any
part of his or her compensation to any prohibited person or entity
as an inducement for or as compensation for any title insurance
business or any escrow or other title business.
5. RATES AND REMITTANCES. Attached hereto and made a part hereof is a
Schedule of Rates and Remittances or Rider. Agent shall quote, charge and
collect the Rates set forth therein, as may be amended from time to time
by Principal, and shall report and remit to Principal premiums as set
forth therein.
6. INSURANCE. Agent shall immediately obtain and keep in full force, at
Agent's expense, during the term of this Contract:
(i) Title Insurance Agent's Errors and Omissions Policy with opinion of
title coverage, with an insurance company acceptable to Principal in
a sum of not less than $1,000,000 with, if reasonably available, a
loss payee provision in favor of Principal; and
(ii) Fidelity Insurance of $1,000,000 covering all officers, employees,
shareholders, partners, members and other principals of Agent with a
loss payee provision in favor of Principal.
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Agent will submit a copy of the policies to Principal within 14 days of
the effective date of this Contract, and Agent agrees to furnish Principal
annually with a copy of such policies and any renewals thereof and any
other evidence that Principal may deem necessary to demonstrate compliance
with this provision. Agent hereby assigns to Principal, Principal's legal
representatives and assigns, all sums claims, demands and causes of action
of whatsoever kind, that Agent may have against Agent's Errors and
Omissions insurance company and against Agent's Fidelity insurance
company, in connection with all claims arising out of the actions of
Agent, its employees, agents, independent contractors and subcontractors
which fall within the scope of this Paragraph 6 and the Contract hereof.
7. LIMITATIONS ON AGENT'S AUTHORITY. Agent shall not, without prior written
approval of Principal:
A. Commit Principal to a risk in excess of One Million Five Hundred
Thousand Dollars ($1,500,000.00). This limit shall include not only
the commitment, policy, endorsement and/or other title assurance
immediately being issued, but also risks where
(i) Agent knows or has reason to believe that additional title
insurance will be ordered covering substantially the same real
property; or
(ii) the aggregate liability will exceed the referenced limit, such
as condominium and time share projects (hereafter referred to
as the "Risk Limit").
B. Commit Principal to insure a title involving a risk which, if
disclosed to Principal, would have been determined to be
extra-ordinary or extra-havardous, or which Agent knew or could have
discovered, through the exercise of reasonable diligence, to have
been based upon a disputed title. The provisions hereunder shall
apply notwithstanding the fact that the dollar amount of the
transaction or the risk is less than the Risk Limit set forth in
Paragraph 7A hereof.
C. Alter the printed language of any commitment, policy, endorsement or
other form furnished by Principal, or commit Principal to any
particular interpretation of the terms or provisions thereof or
issue any policy, endorsement or other title assurance which has not
been approved for use by all required state regulatory agencies and
by Principal.
D. Adjust or otherwise settle or attempt to settle any claim for loss
for which Principal may become liable or engage counsel to represent
Principal or the insured.
E. Accept service of process on Principal. Agent shall immediately
notify Principal of any attempted service of process upon Agent for
Principal. Agent shall also immediately notify Principal of any
matter that is or may become a claim against Principal of which
Agent has knowledge.
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F. Incur bills or debts chargeable to Principal.
G. Commit Principal to a risk with respect to a transaction in which
Agent, a member of Agent's immediate family, a partner, member or
shareholder of Agent or a member of the immediate family of a
partner, member or shareholder of Agent has or will have a legal or
an equitable interest.
H. Handle escrow funds or conduct a Closing, as hereafter defined, of a
transaction in which Agent, a member of Agent's immediate family, a
partner, member or shareholder of Agent or a member of the immediate
family of a partner, member or shareholder of Agent has or will have
a legal or an equitable interest. The term "Closing" as used in this
Contract shall mean: the handling and disbursement of settlement
funds or the providing of settlement services.
I. Insure or commit to insure any property for an amount other than the
fair market value of the estate or interest to be insured or the
amount of the mortgage or portion thereof and other indebtedness
secured thereby to be insured.
J. Neither Agent nor any Affiliated Attorney of Agent will represent
any insured as against the interests of Principal. The term
"Affiliated Attorney" as used herein shall mean any attorney who is
an employee, associate, member, shareholder, or partner of Agent or
any law firm that owns any legal or beneficial interest in Agent.
8. LIABILITY OF AGENT. Agent shall be liable to and agrees to indemnify and
to save harmless Principal for all attorney's fees, court costs,
administrative and other expenses and loss or aggregate of losses
resulting from any one or more of the following:
A. Errors or omissions in any commitment, policy, endorsement or other
title assurance which were disclosed by the application, by the
abstracting, examination or other work papers or which were known to
Agent or which, in the exercise of due diligence, should have been
known to Agent;
B. Errors and/or omissions in any commitment, policy, endorsement or
other title assurance caused by the abstracting or examination of
title by Agent, Agent's employees, Agent's subcontractors or Agent's
independent contractors;
C. Failure of any title insurance commitment, policy, endorsement or
other title assurance to correctly reflect the status of title, the
description of the insured real property or the vesting of title;
D. Failure of Agent, its officers and employees to comply with the
terms of this Contract or with the guidelines, regulations or
instructions given to Agent by Principal;
E. Any improper Closing or attempted Closing by Agent, Agent's
employees, Agent's subcontractors or Agent's independent
contractors, including but not limited to:
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(i) loss or misapplication of customer funds, documents, or any
other thing of value entrusted to Agent in any custodial or
fiduciary capacity resulting in loss to Principal;
(ii) failure to disburse properly or close in accordance with
escrow and/or closing instructions;
(iii) misappropriation of escrow or closing funds by Agent, its
officers, subcontractors or employees;
(iv) any loss pursuant to an Insured Closing Letter issued by
Principal on behalf of Agent; or
(v) failure to disburse immediately available funds.
F. Issuance of a commitment, policy, endorsement or other title
assurance insuring an extra-ordinary risk, extra-hazardous risk, or
a risk Agent knew or should have know to be based upon a disputed
title, not approved by Principal in advance of the issuance by Agent
of documents committing Principal to insure.
G. Any act or failure to act by Agent or its employees, officers,
agents, independent contractors or subcontractors which results in
allegations of liability with respect to Principal or which results
in Principal being liable for punitive, contractual or
extra-contractual damages.
H. Assessment of a fine against Principal by the State Department of
Insurance or the entity which supervises title insurance as a result
of Agent's violation of any regulations of the State Department of
Insurance or State laws or regulations applicable to title
insurance.
I. Failure of Agent to timely furnish insured with a title policy which
Agent is obligated to issue.
Agent agrees to immediately notify its fidelity bond carrier or errors and
omissions insurance carrier of any claim for which Agent may be liable to
Principal.
9. TERMINATION OF ISSUING AGENCY CONTRACT. Notwithstanding anything the
contrary herein, this Contract may be terminated in the event any one of
the following events of default should occur:
A. Agent fails to report policies or remit premiums in accordance with
the provisions hereof said default continues for the applicable cure
period;
B. Agent materially deviates from the guidelines, instructions or
escrow accounting standards of Principal furnished to Agent;
C. Either party hereto fails to perform any of the other material
provisions, covenants or conditions of this Contract on its part to
be performed;
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D. A petition under the United States Bankruptcy Code is filed by or
against either party hereto;
E. A supervisor, conservator or receiver is appointed for either party
hereto or for substantially all of the assets of said party;
F. Agent ceases to engage in the abstract and title insurance agency
business or Agent's license to engage in the abstract and title
insurance business is revoked or suspended;
G. There is a change in the senior management of Agent, and Agent fails
to secure prior written approval of Principal;
H. There is a change of more than 50% of the ownership of the Agent,
and Agent fails to secure prior written approval of Principal;
I. The loss ratio during any calendar year, as herein defined, arising
from policies issued by Agent, equals or exceeds fifty percent
(50%); or
J. Agent, or any of its partners, shareholders, members or principals
is convicted of a felony offense, is disbarred or is suspended from
the practice of law or is determined by administrative proceedings
or otherwise to have acted in violation of state or federal laws
governing title insurance or activities related thereto.
Upon the occurrence of an event of default, the non-defaulting party may
terminate this Contract, upon the expiration of thirty (30) days from the date
of written notice of default to the defaulting party and the defaulting party's
failure to cure. Notwithstanding the foregoing, upon the occurrence of an event
of default as described in Paragraph 9D or 9E, this Contract shall automatically
terminate without notice. Upon the occurrence of an event of default as
described in Paragraph 9B, 9F or 11, this Contract may be terminated by
Principal inunediately upon delivery of written notice to Agent.
Upon expiration or termination of this Contract, Agent shall immediately furnish
to Principal a true, correct and complete accounting of all remittances due
hereunder, all orders involving Principal's title assurances which have not
closed, all orders involving Principal's title assurances which have closed but
for which no policy has been issued and all commitments, policies, endorsements
and other title assurances of Principal which have been issued but not reported
to Principal. Agent shall also provide Principal access to all forms and all
files relating to commitments, policies and other title assurances of Principal.
Agent shall promptly make an accounting of and deliver to Principal all unused
title insurance forms, manuals, advertising, promotional materials, other
supplies exhibiting Principal's name or any variation thereof and all other
supplies furnished by Principal to Agent, except those which Principal
authorizes Agent to retain for purposes of completing pending transactions.
If Principal terminates this Contract as provided for herein, Principal shall at
the same time give notice of the termination to the Missouri Insurance
Commissioner.
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10. EXAMINATION OF RECORDS. Agent agrees to provide to Principal access for
examination purposes at any reasonable time or times to all files, books
and accounts and other records of Agent relating to the business carried
on hereunder and relating to the Closing of transactions involving a
commitment to issue Principal's title assurances. Such right of
examination may also be exercised after termination of this Contract.
11. SHORTAGE OF FUNDS. In the event a shortage is revealed or discovered in
Agent's accounts of funds entrusted to Agent by others or in the
remittances due Principal hereunder, then Principal may declare
immediately due and payable any debts owed by Agent, including any funds
for which Principal may be responsible or have a liability therefor. On
demand by Principal, Agent shall immediately make good the shortage.
12. ADVERTISING. Agent agrees that it will not use the tradename, trade xxxx
or any variation thereof of Principal or any of its subsidiaries or
affiliated entities on any of its advertising without the prior written
approval of Principal.
13. CLAIMS. If a policy claim is made to Agent, if Agent receives notice of a
potential claim, or if Agent receives notice of litigation which may
result in a claim, Agent shall, immediately, by facsimile transmission or
overnight mail, give notice of same to Principal and shall lend all
reasonable assistance, without charge to Principal, in investigating,
adjusting or contesting said claim. Agent is not authorized to act as or
to provide counsel in connection with said claim; however, Principal may
seek Agent's assistance in the selection of counsel.
14. NOTICES. Except as otherwise specifically set forth in this Contract, all
notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given when delivered by hand
or when mailed first class postage prepaid, certified or registered mail,
return receipt requested:
If to Principal, to: Chicago Title Insurance Company
000 Xxxxxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
Attn.: Agency Department
If to Agent, to: LSI Title Company of Oregon, LLC.
000 X. Xxxxx Xx., 0xx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
or to such other address or addresses as each of the parties may
communicate in writing to the other.
15. NON-WAIVER BY PRINCIPAL. The failure of Principal to enforce strictly the
performance by Agent of any provision of this Contract or to exercise any
right or remedy following from Agent's breach of any condition herein or
the acceptance by Principal of any payment, remittance or other
performance during Agent's failure to perform or during Agent's breach
shall not be deemed a waiver by Principal of its rights
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under this Contract as written and shall not be construed to be an
amendment or modification of this Contract as written.
16. ENTIRE AGREEMENT; PRIOR AGREEMENTS. This Contract sets forth the entire
understanding and agreement between the parties hereto with respect to the
subject matter hereof. No terms, conditions, or warranties, other than
those contained herein, and no amendments or modifications hereto shall be
valid unless made in writing and signed by the parties hereto. This
Contract supersedes all prior understandings of any kind, whether written
or oral, with respect to the Contract and the subject matter hereof.
17. ASSIGNMENT; BINDING EFFECT. This Contract is not assignable by Agent
except upon written consent of Principal, and in any event shall be
subject to the prior approval of the Missouri Department of Insurance so
long as Agent and Principal are "affiliates" as defined in section 382.010
of the Missouri Statutes. This Contract is, however, binding on and inures
to the benefit of any corporate successor, parent corporation, affiliate
or wholly owned subsidiary of Principal. The duties and obligations of
Agent and any signatory or guarantor hereunder shall survive any merger,
consolidation, dissolution or change in ownership or structure of Agent.
18. EXCLUSIVITY. Agent shall have no authority and will not undertake to,
without the prior written consent of Principal, serve as a policy issuing
agent for, or issue title insurance commitments, policies, endorsements or
other title assurances relating to real property located in the geographic
area on behalf of, any person or entity, other than Principal, Fidelity
National Title Insurance Company, National Title Insurance of New York,
Inc., or any other title insurance underwriter within the Fidelity
National Financial, Inc. holding company system.
19. INVALID PROVISIONS. If any provision of this Contract or the other
documents contemplated hereby is held to be illegal, invalid, or
unenforceable under present or future laws, such provisions shall be fully
severable; the appropriate documents shall be construed and enforced as if
such illegal, invalid or unenforceable provision had never comprised a
part hereof or thereto; and the remaining provisions hereof or thereof
shall remain in full force and effect and shall not be affected by the
illegal, invalid, or unenforceable provision. There shall be added
automatically as a part hereof or thereto a provision as similar in terms
to such illegal, invalid or unenforceable provision as may be possible and
still be legal, valid and binding.
20. GOVERNING LAW. This Contract shall be governed by and construed in
accordance with the laws of the State of Missouri.
21. ATTORNEY'S FEES. COSTS. VENUE. If a legal action or other proceedings are
brought for the enforcement of this Contract, or because of any alleged
dispute, breach, default or misrepresentation in connection with any of
the provisions of this Contract, the prevailing party shall be entitled to
recover reasonable attorneys' fees, administrative costs and other costs
incurred in that action or proceeding in addition to any other relief to
which it may be entitled. In addition, in the event of a material breach
by Agent, Principal shall be entitled to recover all costs and loss
associated with resolving the
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matter giving rise to said material breach. Venue for any such proceeding
shall be a location of Principal's choice.
22. OTHER AGREEMENTS VOID. It is expressly understood and agreed by and
between the parties hereto that this Contract sets forth all the promises,
agreements, conditions and understandings between Principal and Agent with
respect to this Contract and the subject matter hereof. Pertaining to such
Contract, there are no promises, agreements, conditions or understandings,
either oral or written, between them other than as are herein set forth.
23. CONTRACT. The terms and conditions of this Contract shall apply only to
Principal named herein and shall not apply to any company now or hereafter
affiliated with Principal or with Principal's parent Chicago Title and
Trust Company.
24. SIGNATURES IN COUNTERPART. This Contract and any amendments or attachments
thereto may be executed in one or more counterparts, each of which shall
be construed together to form one contract.
[Signature page follows.]
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IN WITNESS WHEREOF, this Contract is executed this 8th day of February, 2005.
AGENT:
LSI Title Company of Oregon, LLC
By: /s/ Xxxxxx X. Xxxxxxxxxx
---------------------------------------------
Xxxxxx X. Xxxxxxxxxx
Senior Vice President and Assistant Secretary
PRINCIPAL:
Chicago Title Insurance Company
By: /s/ Xxxxxxx Xxx
---------------------------------------------
Xxxxxxx Xxx
Senior Vice President
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RIDER TO ISSUING AGENCY CONTRACT
This Rider to Issuing Agency Contract (hereinafter referred to as "Rider") is
made by and between Chicago Title Insurance Company ("Principal") and LSI Title
Company of Oregon, LLC ("Agent") in order to amend and modify the terms and
provisions of that certain Issuing Agency Contract dated February 8, 2005 and
executed contemporaneously herewith (the Issuing Agency Contract and this Rider
are hereinafter collectively referred to as the "Contract.")
RATES, REMITTANCES, AND GENERAL LIABILITY LIMITATION
1. Attached hereto is the schedule of rates and remittances or manual for the
area covered by this Contract. Agent shall quote, charge and collect said
rates for each policy issued. Principal reserves the right to amend this
schedule, at its discretion.
2. Principal will quote special rates on request for special or unusual
situations.
3. For extraordinary or extra-hazardous risks and for extensions of policy
coverage, Principal reserves the right to set and determine the charge.
4. For each commitment, policy and endorsement of Principal issued by Agent
pursuant to this Contract, Agent shall report and remit nine percent (9%)
of the rates set forth in Paragraph number "1" of this Rider. If the Loss
Percentage during any calendar year, as herein defined, arising from
policies issued by Agent, equals or exceeds twenty percent (20%), Agent
and Principal agree to review and adjust, in good faith, the remittance
rate set forth in this paragraph and the general liability limit set forth
in the Paragraph numbered "9" of this Rider. For the purposes of this
paragraph, Loss Percentage shall mean the total losses incurred by
Principal during a calendar year or portion thereof at the inception of
this Agreement (including all costs and attorneys' fees paid, net of
recoupment, plus claim-based reserves set during such period) divided by
remittances received pursuant to this paragraph during the same calendar
year or portion thereof at the inception of this Agreement, expressed as a
percentage.
5. For charges made pursuant to Paragraphs numbered "2" and "3" of this
Rider, and orders referred to Agent by Principal, Agent shall remit an
amount as shall be agreed upon between Principal and Agent.
6. Where Principal purchases reinsurance or excess coinsurance, a decision
that rests solely with Principal, the division of the rates as herein
provided shall be computed on the net amount remaining after deducting the
costs thereof. Agent shall remit to Principal the cost of such reinsurance
or coinsurance.
7. All payments required hereunder shall be directed to Principal as
hereafter set forth: Remitted premiums, together with any remittance
report or information required by the Contract, shall be delivered to
Principal at the following address: Chicago Title Insurance Company, X.X.
Xxx 00000, Xxxxxxx, XX 00000, Attn: Agency Accounting no later than thirty
(30) days following the Effective Date, as hereinafter defined, of the
title assurance. The Effective Date of any title assurance shall be the
policy date set forth in Schedule A of the title insurance policy.
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8. Compensation. Principal's compensation shall be the amount required to be
remitted hereunder by Agent. Agent's compensation shall be the rates and
charges herein required to be collected, less the amount remitted to
Principal. It is the Parties' mutual understanding and intent to maintain
an annual weighted average compensation to Principal (and/or its
affiliates) of twelve percent (12%) of the rates and charges required to
be collected by Agent and its affiliates on a nationwide basis pursuant to
all Issuing Agency Agreements in force between the Parties and/or their
respective affiliates. The Parties hereto agree to assess on an annual
basis the aggregate compensation of Principal and/or its affiliates under
all such Issuing Agency Agreements, and to prospectively adjust the
amounts remitted by Agent under one or more such Agreements in a good
faith attempt to maintain the desired weighted average on a nationwide
basis.
9. General Liability Limit of Agent: Subject to the provisions of Paragraph
8, Agent shall be liable for the first portion of any Loss sustained or
incurred by Principal as a result of the issuance of the Title Assurances
by Agent in the following amount: $5,000.
Executed this 8th day of February, 2005.
AGENT: PRINCIPAL
LSI Title Company of Oregon, LLC Chicago Title Insurance Company
By: /s/ Xxxxxx X. Xxxxxxxxxx By: /s/ Xxxxxxx Xxx
---------------------------- ---------------------------
Xxxxxx X. Xxxxxxxxxx Xxxxxxx Xxx
Senior Vice President and Senior Vice President
Assistant Secretary
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