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<br />ADDITIONAL TERMS
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<br />a. Vendor hereby warrants that the title to said reai property to be conveyed by Vendor to Vendee shall be free
<br />and clear of all encumbrances, unless otherwise approved by the Vendee. Before any funds are disbursed to
<br />Vendor, said real property shall be, free and clear of any and all conditions, restrictions, reservations,
<br />exceptions, easements, assessments, profits, limitations, encumbrances, liens, leases, clouds or defects in
<br />title. Vendor further agrees that acceptance by Vendee of any deed to said real property, with or without
<br />knowledge of any condition, restriction, reservation, exception, easement, assessment, profit, limitation,
<br />encumbrance, lien, lease, cloud or defect in tille, shall not constitute a waiver by Vendee of its right to the full
<br />and clear title hereinabove agreed to be conveyed by Vendor to Vendee, nor of any right which might accrue
<br />to Vendee because of the failure of Vendor to convey tille as hereinabove provided.
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<br />b. Upon execution or recordation of this Contract, and after a search of the public records and upon fuifillment of
<br />any conditions required of Vendor and Vendee, Vendor and Vendee shall obtain policies of title insurance
<br />insuring said parties' interests herein from Commonwealth Land Title Company, with costs to be borne by the
<br />Vendee, with the Vendee therein named as the insured, in the amount EIGHT HUNDRED FIVE THOUSAND DOLLARS
<br />AND NO/100 ($805,000). Said policy shall insure the title of the Vendee to said real properly is free and clear of any
<br />and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances,
<br />liens, teases, clouds or defects in title, excepting such specific ones as Vendee may hereinafter expressly agree to take
<br />subject to. Acceptance by Vendee of any such policy of insurance, whether such insurance complies with the
<br />requirements of this paragraph or not, shall not constitute a waiver by Vendee of its right to such insurance as is herein
<br />required of Vendor, nor a waiver by the Vendee of any rights of action for damages or any other rights which may accrue
<br />to Vendee by reason of the failure of Vendor to convey title or to provide title insurance as required in this Agreement.
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<br />c. Vendee agrees to open an escrow at the office of Commonwealth Land Title Company, 2301 Dupont Drive, Suite 450,
<br />Irvine, California 92612, (the Escrow Agent) within five (5) days from and after the date on which the Vendee has
<br />approved this Agreement. This Agreement constitutes the joint escrow instructions of the Vendee and the Vendor and a
<br />duplicate original of this Agreement shall be delivered to the Escrow Agent upon the opening of the escrow.
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<br />The Escrow Agent hereby is empowered to act under this Agreement, and upon indicating its acceptance of this Section
<br />4 and of the General Provisions described in Exhibit "A" attached hereto and incorporated herein by this reference, in
<br />writing, delivered to the Vendee and to the Vendor within five (5) days after delivery of this Agreement, shall carry out its
<br />duties as Escrow Agent hereunder.
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<br />Vendee agrees to bear and Escrow Agent is hereby authorized to charge to the Vendee the cost of any transfer taxes,
<br />recording fees, cost of title insurance, reconveyance fees, document preparation fees, escrow fees and any other closing
<br />costs incidental to the conveying of said real properly to Vendee. Penaities for prepayment of bona fide obligations
<br />secured by any existing deed of trust or mortgage shall be waived pursuant to Civil Code Procedures Section 1265.240.
<br />The liability to the Escrow Agent under this Agreement is limited to performance of the obligations, usual to an escrow
<br />holder as set forth herein and Exhibit "A" of the General Provisions of this Agreement.
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<br />d. Real properly taxes, if any, on said real properly for the fiscal year within which said real properly is conveyed to Trustee
<br />as are unpaid at the time of recordation of this contract shall be cleared and paid in accordance with the provisions of
<br />Section 4986 of the Revenue and Taxation Code of the State of California. Vendor shall be eligible for a refund under
<br />Section 5096.7 of the Revenue and Taxation Code of the State of California for that portion of properly taxes on said real
<br />property for said fiscal year which have been paid prior to the date this contract is recorded which is allocable to that
<br />portion of the fiscal year which begins on the date of recordation of this contract and made uncollectible if unpaid by
<br />reason of Section 4986 of the Revenue and Taxation Code of the State of California. All unpaid taxes on said real
<br />properly for any and all years prior to the fiscal year within which said conveyance is made shall be paid by Vendor
<br />before conveyance of said real properly to Trustee.
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<br />e. Vendee agrees to pay from the recordation of this contract: (1) all taxes and assessments affecting the property,
<br />including assessments on appurtenant water stock; (2) all encumbrances, charges and liens, with interest, on the
<br />property or any part thereof when due, which appear to be prior or superior hereto; (3) all allowable expenses of
<br />this Agreement.
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<br />Should Vendee fail to make any payment or to do any act as herein provided, then Vendor or Trustee, but without
<br />any obligation to do so, without notice to or demand upon Vendee and without releasing Vendee from any
<br />obligation hereof, may: (1) make or do the same in such manner and to such extent as either may deem
<br />necessary to protect the security hereof, Vendor being authorized to enter upon said property for such purposes;
<br />(2) appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers
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