FIRST AMERICAN TITLE INSURANCE COMPANY (THE "TITLE
COMPANY"); (II) COPIES OF ALL DOCUMENTS SUPPORTING EXCEPTIONS ("EXCEPTIONS") SET
FORTH IN THE COMMITMENTS; AND (III) A COPY OF THE EXISTING SURVEYS FOR THE REAL
PROPERTY IDENTIFIED ON SCHEDULE 2.1(A)(I) (COLLECTIVELY, THE "SURVEYS") (SUCH
COMMITMENTS, EXCEPTIONS, AND SURVEYS COLLECTIVELY, THE "TITLE DOCUMENTS").
THE
FOLLOWING MATTERS ARE HEREBY APPROVED BY PURCHASER (COLLECTIVELY, THE "PERMITTED
EXCEPTIONS"):
(A) ALL EXCEPTIONS TO TITLE SHOWN ON THE COMMITMENTS AND ALL
MATTERS SHOWN ON THE SURVEYS; (B) ALL OF THE CONTRACTS, LEASES AND OTHER
AGREEMENTS LISTED AS ITEMS 1 THROUGH 119 ON SCHEDULE 2.1(E); (C) THE LIEN OF
NON-DELINQUENT TAXES (IT BEING AGREED BY PURCHASER AND SELLER THAT IF ANY TAX IS
LEVIED OR ASSESSED WITH RESPECT TO THE REAL PROPERTY FOR PUBLIC IMPROVEMENTS
THAT WILL BENEFIT THE REAL PROPERTY SUBSEQUENT TO THE DATE OF THIS AGREEMENT AND
SELLER HAS THE ELECTION TO PAY SUCH TAX EITHER IMMEDIATELY OR UNDER A PAYMENT
PLAN WITH INTEREST, SELLER MAY ELECT TO PAY UNDER A PAYMENT PLAN, WHICH ELECTION
SHALL BE BINDING ON PURCHASER); (D) ALL PRINTED EXCEPTIONS AND EXCLUSIONS
CONTAINED IN THE FORM OF THE TITLE POLICIES TO BE ISSUED AT CLOSING; AND (E) ANY
MATTERS CAUSED OR CREATED BY, OR OTHERWISE APPROVED OR CONSENTED TO IN WRITING
BY, PURCHASER.
(B)
PURCHASER SHALL HAVE THE RIGHT TO OBJECT IN
WRITING TO ANY TITLE MATTER THAT IS NOT A PERMITTED EXCEPTION (OTHER THAN ANY
MATTER FALLING WITHIN SUBSECTION (E) OF THE DEFINITION OF PERMITTED EXCEPTIONS)
WHICH MAY APPEAR ON SUPPLEMENTAL TITLE COMMITMENTS OR UPDATES TO THE COMMITMENTS
ISSUED AFTER THE DATE OF THE RESPECTIVE COMMITMENTS (COLLECTIVELY, "OTHER
LIENS") WITHIN FIVE (5) DAYS AFTER RECEIPT THEREOF (TOGETHER WITH A COPY OF SUCH
NEW EXCEPTION) BY PURCHASER.
UNLESS PURCHASER SHALL TIMELY OBJECT TO SUCH OTHER
LIENS, ALL SUCH OTHER LIENS WHICH ARE SET FORTH IN ANY SUCH SUPPLEMENTAL
COMMITMENTS OR UPDATES SHALL BE DEEMED TO CONSTITUTE ADDITIONAL PERMITTED
EXCEPTIONS.
ANY EXCEPTIONS WHICH ARE TIMELY OBJECTED TO BY PURCHASER
38
SHALL BE HEREIN COLLECTIVELY CALLED THE "TITLE OBJECTIONS."
SELLER MAY ELECT
(BUT SHALL NOT BE OBLIGATED) TO REMOVE, OR CAUSE TO BE REMOVED AT ITS EXPENSE,
ANY TITLE OBJECTIONS, AND SHALL BE ENTITLED TO A REASONABLE ADJOURNMENT OF THE
CLOSING (NOT TO EXCEED A PERIOD OF THIRTY (30) DAYS) FOR THE PURPOSE OF SUCH
REMOVAL, WHICH REMOVAL WILL BE DEEMED EFFECTED BY THE ISSUANCE OF TITLE
INSURANCE ELIMINATING THE TITLE OBJECTIONS OR INSURING AGAINST THE EFFECT OF THE
TITLE OBJECTIONS; PROVIDED, HOWEVER, SELLER SHALL BE OBLIGATED TO REMOVE OR BOND
OVER ANY AND ALL LIENS FOR BORROWED MONEY, MECHANICS' AND MATERIALMEN'S LIENS,
TAX LIENS AND ANY LIENS RESULTING FROM THE FAILURE TO SATISFY AN OBLIGATION WHEN
DUE, IN EACH CASE AFFECTING ANY REAL PROPERTY, ON OR BEFORE THE CLOSING DATE.
SELLER SHALL NOTIFY PURCHASER IN WRITING WITHIN FIVE (5) DAYS AFTER RECEIPT OF
PURCHASER'S NOTICE OF TITLE OBJECTIONS WHETHER SELLER ELECTS TO REMOVE THE
SAME.
IF SELLER FAILS TO REMOVE ANY TITLE OBJECTIONS PRIOR TO THE CLOSING,
PURCHASER MAY ELECT EITHER TO:
(I) TERMINATE