FACTS. THE FOREGOING RELEASE OF CLAIMS SHALL BE BINDING ON
BUYER AND ALL SUBSEQUENT OWNERS, LESSEES AND OTHER TRANSFEREES OF THE PROPERTY.
4
(B)
IN CONNECTION WITH SECTION 4.5(A) ABOVE, BUYER EXPRESSLY WAIVES
THE BENEFITS OF SECTION 1542 OF THE CALIFORNIA CIVIL CODE WHICH PROVIDES AS
FOLLOWS:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH
THE DEBTOR."
Buyer's Initials /s/ CM
5.
CONDITIONS OF BUYER'S OBLIGATIONS. THE CLOSING AND BUYER'S
OBLIGATIONS UNDER THIS AGREEMENT TO PURCHASE THE PROPERTY SHALL BE SUBJECT TO
THE REASONABLE SATISFACTION, PRIOR TO THE TIMES PRESCRIBED HEREIN, OF THE
FOLLOWING CONDITIONS, WITH BUYER TO RETAIN THE RIGHT TO WAIVE, IN WRITING, IN
WHOLE OR IN PART, ANY OF THE FOLLOWING CONDITIONS (COLLECTIVELY, THE
"CONTINGENCIES") AT OR PRIOR TO THE TIME PRESCRIBED HEREIN FOR APPROVAL OR
DISAPPROVAL BY BUYER:
5.1
TITLE REPORT. WITHIN THREE (3) BUSINESS DAYS AFTER THE EXECUTION
DATE, SELLER SHALL DELIVER TO BUYER A PRELIMINARY TITLE REPORT PREPARED BY FIRST
AMERICAN TITLE COMPANY ("TITLE COMPANY") WITH RESPECT TO THE PROPERTY (THE
"TITLE REPORT"), TOGETHER WITH COMPLETE COPIES OF ALL EXCEPTIONS SET FORTH
THEREIN. BUYER SHALL HAVE UNTIL 5:00 P.M. (PACIFIC TIME) ON THE DATE WHICH IS
TEN (10) DAYS AFTER RECEIPT OF THE TITLE REPORT (OR THE NEXT BUSINESS DAY IF
SUCH DATE FALLS ON A WEEKEND OR HOLIDAY) TO NOTIFY SELLER AND THE ESCROW AGENT,
IN WRITING, OF BUYER'S DISAPPROVAL OF ANY EXCEPTIONS OR ITEMS SHOWN THEREON AND
TO OBTAIN, AT BUYER'S SOLE COST, THE COMMITMENT OF THE TITLE COMPANY TO ISSUE
THE TITLE POLICY (AS DEFINED IN SECTION 5.5 BELOW), INCLUDING SUCH ENDORSEMENTS
AS BUYER MAY REASONABLY REQUEST. IF BUYER DOES NOT GIVE SELLER WRITTEN NOTICE OF
DISAPPROVAL OF ANY OF THE FOREGOING ITEMS WITHIN THE PRESCRIBED TIME, THE TITLE
REPORT AND THE SUPPORTING DOCUMENTS SHALL BE DEEMED APPROVED (AND ALL EXCEPTIONS
THEREIN SHALL BE DEEMED "PERMITTED EXCEPTIONS" AND THIS CONDITION SHALL BE
DEEMED SATISFIED); PROVIDED, HOWEVER, BUYER MAY AT ANY TIME DURING THE FOREGOING
TEN (10) DAY PERIOD OBJECT TO ANY TITLE MATTERS AFFECTING THE PROPERTY. WITHIN
FIVE (5) DAYS OF RECEIPT OF BUYER'S NOTICE OF DISAPPROVAL OF ANY OF THE
FOREGOING ITEMS, SELLER SHALL NOTIFY BUYER WHETHER SELLER IS WILLING TO REMOVE
ANY SUCH ITEM WHICH BUYER HAS DISAPPROVED. IF SELLER DOES NOT GIVE BUYER WRITTEN
NOTICE WITHIN THE PRESCRIBED PERIOD OF TIME, SELLER SHALL BE DEEMED TO HAVE
ELECTED NOT TO REMOVE ANY SUCH ITEM WHICH BUYER HAS DISAPPROVED. IF THERE ARE
EXCEPTIONS WHICH BUYER HAS DISAPPROVED AND WHICH SELLER IS NOT WILLING TO REMOVE
AT SELLER'S EXPENSE, BUYER SHALL HAVE UNTIL THE END OF THE DUE DILIGENCE PERIOD
(OR SUCH FIVE (5) DAY PERIOD FOR SELLER'S RESPONSE, WHICHEVER IS LATER) TO
NOTIFY SELLER IN WRITING OF BUYER'S ELECTION TO EITHER (A) WAIVE ITS DISAPPROVAL
AND APPROVE SUCH EXCEPTIONS, OR