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% subsequent to date of option for public improvements chargeable to Capital Account; Purchaser has right to exercise option at any time during the term by delivering to Land Company written notice of its intention to do so, together with full amount of the purchase price, and shall furnish Land Company plans for approval, with evidence of written agreement, for construc­tion upon option parcel of a good and substantial office and warehouse building containing a floor area of not less than 25,000 sq. ft,; Land Company to deliver to Purchaser, through escrow, grant deed conveying the parcel, subject to: (a) Taxes for the fiscal year in which option is exercised, whether yet payable or not; (b) Conditions, restrictions, reservations, easements and encumbrances of record; (c) Any and all encumbrances or defects in title made or suffered by Purchaser. Deed to except and reserve all oil and mineral rights without right of entry as outlined in option agreement; deed shall also reserve to Land Company an easement for railroad purposes in area described therein; upon exercise of option, Purchaser to enter into an agreement with Los Angeles & Salt Lake Railroad Company and its Lessee, Union Pacific Railroad Company, for construction, maintenance and operation of an industry spur track, Railroad companies, at their expense, to construct track to property line of option parcel; Industry to construct at its sole expense, trackage located on option parcel; Land Company -2-