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(a) Taxes for the fiscal year in which the 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 as outlined in option agreement; deed shall also reserve to Land Company an easement for roadway purposes in area described therein, Land Company to reserve the right to dedicate easement areas to City of Industry. Purchaser to enter into an agreement with the Los Angeles & Salt Lake Railroad Company and its Lessee, Union Pacific Railroad Coup any, for construction, maintenance and operation of an industry spur track. Railroad Company to construct at its expense, to property line of option Parcel No. 1; Industry to construct at its expense, track located upon Parcel No. 1. Railroad shall construct, at expense of Purchaser, portion of track on Parcel No. 2, switch point to property line Parcel No. 1. Land Company at its expense, to construct an extension to existing sewer line to the northerly line of option Parcel No. 1. Industry to construct required sewer facilities on Parcel No. 1 and arrange all utility connections thereto. -2-