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F.YSITOTT nT~~ Attached to that certain Construction Loan Agreement Dated _ 5/27/93 and made a part thereof. INSPECTION AND DISBURSEMENP BCEB;DULE (MONI'f~,Y DRAI9 BYSTEM) For Inspection, Call: Cia Fernandez Telephone No.:(510) 426-6212 Before release of the respective dj.sbursementa, inspections will be made by Community First Natl. Bank("Bank") inspector and disbursements will be made in accordance with his/her findings, but no such inspections or disbursements shall be construed as a representation or warranty, express or implied, that there has been ca~liance with plans and specifications or governmental building requirements or that construction is free fmm defects in plans, materials or workmEU~ship. It is agreed that the inspections are made for the benefit of Bank and not for the benefit of the Borrower, and that the Borrower will not rely thereon but will make such independent inspections on his/her own behalf as he/she deems advisable. Refer to the Construction Loan Agreement for further provisions. According to the attached draw schedule, as the work progresses, there will be presented to Bank an itemized statement showing the total an»unt expended and/or due for work performed or material or equipment furnished during the preceding one month period. such statement shall be approved in writing by the Borrower; thereafter upon its approval by Bank, the Bank will disburse 100% of the total draw request up to 90~ of the total building fund and site improvements and tenant improvements. jd°twithstanding the foregoing, the Bank shall not be required to make disbursements after tl:e foundations have been installed, unless or until it obtains, if required by the Bank, a CIlPA Endorsement No. 102.4 to its title policy assuring in effect that the foundations have been located and °O~~~ed w-l.thin the boundary lines of the property included irx the Ean'c's deed of trust or a ALTA Endorsement No. 102.5 gjving the same assurance andalso assuring that the foundations do not encroach on any Q~sanents; in this regard, the Borrower shall furnish to the Bank such ~u-reys and certificates as may be required by the title company in ootinection with the issuance of such endorsement. The Bank will make application for such endorsement immediately following notification by the Borrower that the foundations have been installed. The final l00 of the entire building fund will be disbursed after the building is fully colleted, Notice of Completion filed of record, and upon the occw:rence of the earlier Conditions 1 or 2 hereinafter set forth: Condition 1: Upon the expiration of five (5) days from the filing of said Notice of Completion PRAVIDID each and all of (a), (b), and (c) following shall then exists (a) No unpaid claims or other liens shall be on file with Bank against any of the building funds in the hands of Bank; and (b) There shall have been furnished to Sank title insurance satisfactory to it issued by a title company acceptable to Sank insuring it in substance against any loss it shall sustain by reason of any statutory Liens for labor or material arising out of any work•of improvement referred to in the Notice of Con~letion and which may have gained or thereafter may gain priority over the lien of ean)c deed of trust securing its loan in this case as to the real property covered thereby; and (c) The borrower shall then request in writing that such disbursement be made. Page 1 of 2