COVENANTS AND AGREEMENTS OF AGREEMENT FOR SALE OF REAL ESTATE

1. TAXES, which accrue during the year of purchase by BUYER, shall be prorated as of the date of execution of this Agreement. Therefore, BUYER shall pay for all subsequent taxes and all assessments levied subsequent to date of this Agreement.

2. BUYER shall have no right to cut or harvest any trees from the property excepting for his personal use until such time as the property is paid in full. No trees over 4” in diameter can be harvested.

3. BUYER shall construct no buildings upon the property that do not conform to applicable Health and Building codes of Klamath County, Oregon.

4. BUYER will not be allowed to move on to the property until a LEGAL and PROPER septic system is installed.

5. BUYER will allow no public nuisances to be created upon the property and will not allow the property to become unsightly.

6. IT IS understood and agreed between said parties that time is of the essence of this agreement, and in case the BUYER(S) shall fail to make the payments as required on page 1, or any of them, punctually within 10 days of the time limited therefor or fail to keep any agreement herein contained, then the SELLER at Seller’s option shall have the following rights: (1) To declare this agreement canceled for default and null and void, and to declare the purchaser's rights forfeited and debt extinguished, and to retain sums previously paid hereunder by the BUYER(S). (2) To declare the whole unpaid principal balance of said purchase price with the interest thereon at once due and payable. (3) To withdraw said deed and other documents from escrow, and/or; (4) To foreclose this agreement by suit in equity.

7. IN CASE suit or action is instituted to foreclose this contract or to enforce any provision hereof, the losing party in said suit or action agrees to pay such sum as the trial court may adjudge reasonable as attorney’s fees to be allowed the prevailing party in said suit or action and if an appeal is taken from any judgement or decree of the trial court, the losing party further promises to pay such sum as the appellate court shall adjudge reasonable as the prevailing party’s attorney’s fees on such appeal.

8. PURCHASER agrees NOT TO TRANSFER, ASSIGN OR RECORD, in the Office of the County Recorder of any county, the Purchase Agreement or any interest therein WITHOUT THE WRITTEN CONSENT OF THE SELLER FIRST HAVING BEEN SECURED, and if he does transfer, assign or record same without said consent, then the total balance thereon at that time shall immediately become due and payable.

9. SELLER, 10 months from the date of this agreement, at the times and in the manner described, agrees, at BUYER’S expense, to deliver a policy of title insurance. Some parcels MAY NOT HAVE, NOR CONTAIN mineral rights, however, SELLER will transfer all mineral rights IF ANY, upon full and final payment of Agreement. SELLER guarantees FREE AND CLEAR Title.

10. AT BUYER’S expense, SELLER will issue to BUYER, his heirs and assigns, 10 months subsequent to the date of this Agreement, a Grant Deed secured by a Note and Deed of Trust to the subsequent property, provided that BUYER has adhered to ALL of the terms and conditions of this Agreement, and all payments have been timely, and account is current.

11. A LATE CHARGE of ten percent (10%) of gross monthly payment, but not less than Five Dollars ($5.00), will be charged for any payment RECEIVED ten (10) days after the date as set forth on Page 1 of this Agreement.

12. BUYER agrees to pay one-half (1/2) monthly collection fee on each installment. The fee as of the date of this Agreement is Six Dollars ($6.00). BUYER will pay Three Dollars ($3.00) as his portion. This fee may be subject to minimal increase during the term of this contract. SELLER will notify BUYER in writing prior to increase, if any.

13. SELLER will allow BUYER a one-year exchange on any parcel of comparable price. BUYER may upgrade at any time during the term of this agreement.

14. BUYER agrees upon issue of Note and Deed of Trust to sign Estoppel Deed in Lieu of Foreclosure with 90-day grace period attended by SELLER.

15. DISCOUNT: a discount of ten percent (10%) off the principal balance is offered to buyer for a cash out of principal balance at any time.

16. PREPAYMENT PENALTY: There is NO penalty for early-payoff. BUYER may make greater installments to reduce the interest Charges.

17. SELLER shall have the right to assign this Agreement.

19. THIS LOT is sold as is, SELLER makes no representation as to value, if any.

20. SELLER will subordinate loan if requested by BUYER(S).

21. That in the event of failure by the BUYER to comply with the terms of the Agreement, the SELLER, with reasonable notice to the BUYER, AT HIS OPTION, shall be released from all obligations in law or equity to convey said property, and the BUYER shall forfeit all rights thereto and monies therefore under Agreement, and the BUYER’S interest in or to said monies or had never been paid or the Agreement entered into, and, in the event the BUYER should then be in possession of said property, SELLER shall therefore be entitled to immediate possession thereof and shall have full power to dispose of said property as if the Agreement had never been made.

22. The Contract DOES NOT provide (1.) For the SELLER to provide BUYER a policy of Title Insurance. (2.) For the SELLER to provide any improvements of any kind or nature; to assist in the extension of services or utilities to serve the individual lots within the subdivision; nor to provide maintenance for improvements now existing within or serving the subdivision. (3.) Any reference to a proposed Klamath County Owner’s Association and the mandatory membership therein required by. PURCHASERS of lots in the Subdivision.

I (We) have read all the above conditions, and understand and accept them as a part of this Sales Agreement.