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. OR-2120311 TITLE OFFICER - JEFFREY C. PASCHAL . Preliminary Report NOTICE SECTION 12413.1 OF THE CALIFORNIA INSURANCE CODE. EFFECTIVE JANUARY I. 1990. REQUIRES THAT ANY TITLE [NSURANCE COMPA:-lY. UNDERWRITTE:-l TITLE COMPANY, OR CONTROLLED ESCROW COMPANY HANDLING FUNDS IN AN ESCROW OR SUB-ESCROW CAPACITY. WA[T A SPEC[FIED NUMBER OF DAYS AFT.ER DEPOSlTlNG FUNDS. BEFORE RECORDING ANY DOCUMEJ\;TS IN CONNECTION WITH THE TRANSACTION OR D[SBURSING FUNDS. THIS STATUTE ALLOWS FOR FU!':DS DEPOSITED BY WIRE TRANSFER TO BE D[SBURSED THE SAME DAY AS DEPOSIT. IN THE CASE OF CASHIER'S CHECKS OR CERTIF[ED CHECKS. FU1\DS MA Y BE DISBURSED THE 1\EXT DAY AFTER DEPOSIT. IN ORDER TO A VOID U!':NECESSARY DELAYS OF THREE TO SEVEN DAYS. OR MORE. PLEASE USE WIRE TRANSFER. CASHIER'S CHECKS. OR CERTIFIED CHECKS WHENEVER POSSIBLE. IF YOL' HAVE ANY Ql.iESTlOi\S ABon THE EFFECT OF THIS NEW LAW, PLEASE CONTACT YOUR LOCAL FIRST A!\[ERICAN OFFICE FOR MORE DETAILS. ............. NOTICE IN ACCORDANCE WITH SECTIO:--;S 18662 AND 18668 OF THE REVENUE A:-:D TAXATION CODE. A BL:YER MAYBE REQUIRED TO WITHHOLD AN AMOUf'.:T EQUAL TO THREE AND ONE.THIRD PERCEJ-;T OF THE SALES PRICE IN THE CASE OF THE DISPOSITION OF CALIFORNIA RE.-\L PROPERTY If'.:TEREST BY EITHER: I. A SELLER WHO IS AN I!'iDIVIDUAL WITH A LAST KNOWN STREET ADDRESS OUTSIDE OF CALIFORNIA OR WHEN THE DISBURSEME",T INSTRUCTIONS AUTHORIZE THE PROCEEDS BE SENT TO A FINANCIAL INTERMED[ARY OF THE SELLER. OR 2. A CORPORATE SELLER WHICH HAS NO PERMANE1\'T PLACE OF BUSfNESS IN CALIFORNIA. · THE BUYER MAY BECO~'IE SUBJECT TO PENALTY FOR FAILURE TO WITHHOLD AN A~tOUr--.1 EQUAL TO THE GREA TER OF 10 PERCENT OF THE AMOUNT REQUIRED TO BE WITHHELD OR FIVE HUNDRED DOLLARS (S500). HOWEVER. !':OTWITHSTANDING ANY OTHER PROVISION INCLUDED IN THE CALlFORNL-\ STATUTES REFERENCED ...BOVE. NO BUYER WILL BE REQUIRED TO WITHHOLD ANY A!\IOUNT OR BE SUBJECT TO PENALTY FOR FAILURE TO WITHHOLD IF: I THE SALES PRICE OF THE CALIFORNIA REAL PROPERTY CO:-.<VEYED DOES NOT EXCEED Ol'>E HUl"DRED THOLJSAl"D DOLLARS (5100.0001. OR 2. THE SELLER EXECUTES A WRITTEN CERTIFICATE. Ul"DER THE PE!':ALTY OF PERJURY. CERTIFY[NG THAT THE SELLER IS A RESIDE"T OF CALIFORNIA. OR IF A CORPORATION. HAS A PERMANENT PLACE OF BUSINESS IN CALlFOR:-'<IA, OR 3 THE SELLER. WHO IS A:"oi ISDIVIDUAL. EXECUTES A WRITTEN CERTIFICATE. UNDER THE PENALTY OF PERJURY. THAT THE CALlFORNl-\ REAL PROPERTY BEI!':G CONVEYED IS THE SELLER'S PRI:-jOPAL RESIDENCE (AS DEFINED IN SECTION 1034 OF THE INTER:\AL REVENUE CODE). THE SELLER IS SUBJECT TO PENALTY FOR KNOWINGLY FILING A FRAUDULENT CERTIFICATE FOR THE PURPOSE OF A VOJDL-;G THE WITHHOLDING REQUIREMENT. THE CALIFORNIA STATUTES REFERENCED ABOVE I:\CLUDE PROVISIO,-;S WHICH AUTHORIZE THE FRAr-;CH1SE TAX BOARD TO GRANT REDUCED WITHHOLDI:-IG AND WAIVERS FRO~[ WITHHOLDI:\G 0:'\ A CASE.BY-CASE BASIS. THE P.-'..RTJES TO THIS TRA:-iSACTlON SHOl!LD SEEK A.'i ATTOR.'iEY'S, ACCOUNTA:\'T'S, OR OTHER TAX SPECIALlST'S OPINION CONCERNl:-iC THE EFFECT OF THIS LAW ON THIS TR..\.'iSACTlO:-'< Al'\D SHOULD 1'\OT ACT 0:-'< A~T STATBIE:-iTS !\J..WE OR D:\I1TTED BY THE ESCROW OR CLOSJ:-iC OFF1CER. Exhibit C PAGE 6