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<br />do not materially affect the value, of the Property; and such other encumbrances as may be
<br />assumed or specifically approved by Buyer. Yf Seller is unable to deliver fee simple
<br />marketable title to the Property, free of encumbrances, except for ad valorem taxes for the
<br />current year; utility easements and unviolated restrictive covenants that do not materially
<br />affect the value of the Property and such other encumbrances as may. assumed or specifically
<br />approved by Buyer, then the Option Money shall be refunded. Seller shall provide to Buyer,
<br />not later than ten (10) days after the Acceptance Date, such title information, including
<br />copies of any title policies, that Seller may have in its possession. Buyer acknowledges that
<br />title to the property will be subject to an easement for ingress, regress and egress over and
<br />across the Property from Guess Road to property of the Seller in Durham County and Buyer
<br />has approved such easement.
<br />' 4. REPRESENTATIONS WARRANTIES
<br />Seller represents, warrants and covenants to Buyer as
<br />(a) Authorit~o;~,Seller. Seller has the right, power and authority and has
<br />obtained all requisite authorizations to enter into this Agreement and to sell the
<br />Property in accordance with the terms and conditions hereof.
<br />(b) Condemnation,, Litigation. Seller has not received any written notice of any
<br />(i) pending or threatened condemnation proceeding affecting.the Property or
<br />any portion thereof, nor is Seller aware of any matters which it reasonably
<br />expects to develop armature into a condemnation proceeding, or (ii) litigation
<br />affecting the Property or any portion thereof that would affect Seller's ability
<br />to convey the Property to Buyer without exception therefor being taken by the
<br />Title Company. Seller will promptly give Buyer written notice of any
<br />pending or threatened condemnation or litigation affecting the Property or any
<br />portion thereof of which Seller receives written notice after the date hereof.
<br />Seller has not received any notice of any existing action, suit or proceeding
<br />affecting the Seller or the Property ar any portion thereof or relating to, or
<br />arising out of the ownership, use, occupancy or operation of the Property, in
<br />any court ar before any federal, state, county or .municipal department,
<br />commission, board, bureau or agency or other governmental instrumentality.
<br />(c) Contravention of Other A reements. To the best of Seller's knowledge,
<br />the consummation of the transaction contemplated hereby by Seller will not:
<br />(i) conflict with, result in a breach of or constitute a default under any --
<br />agreement or instrument to which Seller is a party or by which it--or the
<br />Property are bound; (ii) violate any restriction to which Seller ar the Property
<br />is subject; (iii) constitute a violation of any applicable code, resolution, law,
<br />statute, regulation, order, ordinance, rule, judgment or decree; or (iv) result in
<br />the creation of any lien, chazge or encumbrance upon any assets to be sold to
<br />Buyer hereunder.
<br />(d) Notice of Violations. Seller has not received any written notice of violation
<br />of any building, zoning, fire or other code, regulation, law, statute, resolution,
<br />rule, order, ordinance, judgment ar decree affecting the Property or any part
<br />thereof requiring any action or compliance by Seller, except as have been, or
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