Buyer and Seller recognize that the sale of the Property pursuant to the Agreement is or may result in a Short Sale.

A Short Sale occurs when (i) the Seller's proceeds are less than the amount necessary to pay the costs of the sale and satisfy the outstanding balance of liens secured by the Property and (ii) the holders of such liens (Lienholders) agree to release their liens for less than the amounts owed to them. Such liens may include by way of example, deeds of trust, home equity lines of credit, tax claims, HOA/condo fees, and judgments.

In the event this Addendum conflicts with the Agreement, the terms of this Addendum shall control. Terms not defined in this Addendum will have the meaning set forth in the Agreement.

Lienholder is not obligated to accept a request for a Short Sale. Lienholders may require some terms of the Purchase Agreement be amended in exchange for approval of a Short Sale request. Neither Buyer nor Seller is obligated to agree to any proposals for amendment to the Agreement requested by Lienholders.

Buyer acknowledges that the short sale approval process is at the discretion of Lienholders. Seller, Listing Firm or Selling Firm cannot guarantee the timeframe or approval by Lienholders.

If Seller receives a written rejection of the Short Sale from Lienholders, Seller shall deliver a copy of the written rejection to Buyer, the Purchase Agreement will become void and of no further force or effect, Seller shall deliver the appropriate release of the Agreement to Buyer and the Deposit shall be returned to Buyer.

Seller's obligations under the Agreement are contingent upon Seller obtaining Approvals of the terms of the Agreement and the amounts paid to each Lienholder in exchange for releasing such Lienholder's lien.

The time frames in the Agreement for settlement, appraisals and Property Inspections shall remain as set forth in the Agreement unless a different time frame is established by marking the applicable box below, in which event the time frame set forth in A , B or C below shall be applicable and the time frame in the Agreement shall be modified accordingly.

Buyer and Seller acknowledge that neither Listing Firm nor Selling Firm represent Lienholders. Seller acknowledges that, although a Lienholder may agree to accept less than the amount owed to it in releasing its lien on the Property, such Lienholder may not necessarily waive its right to collect the balance of the debt from Seller. Furthermore, if there is forgiveness of the debt, such amount may result in taxable income to the Seller. The parties further acknowledge that neither broker is providing legal, tax, or financial advice and

SELLER IS DIRECTED TO CONSULT WITH A TAX ADVISOR CONCERNING TAX IMPLICATIONS OF A SHORT SALE AND LEGAL COUNSEL CONCERNING CONSEQUENCES OF A SHORT SALE.

As a condition of approving any proposed Short Sale request, Lienholders may require that Seller continue to market the Property even after Buyer and Seller have agreed to the terms of the Agreement.

If during the Short Sale process a foreclosure is initiated, Seller shall disclose such action by a Lienholder to Buyer. Buyer shall have the right to terminate the Agreement upon receipt of written notice from Seller or Listing Firm that a Lienholder has initiated foreclosure by giving written notice to Seller, whereupon the Purchase Agreement shall be void, the Seller shall deliver the appropriate release and the Deposit shall be returned to Buyer. Buyer and Seller understand that if Settlement does not occur before the foreclosure of the Property, Seller will lose all rights and interest in the Property. In such event, the Agreement shall be void and of no further force and effect, and the Deposit shall be returned to Buyer.

Listing Firm agrees to keep Selling Firm informed of any progress being made in the Short Sale process and Selling Firm agrees not to initiate any contact with any Lienholder. Should any Lienholder contact Selling Firm, Selling Firm shall refer the Lienholder to Listing Firm and shall not enter into substantive discussions with the Lienholder with respect to the transaction. Seller, by executing this Addendum, gives Listing Firm authority to convey information regarding the progress of the short sale process to Selling Firm.

The brokerage fee owed to Listing Firm is governed by separate agreement between Seller and Listing Firm.

The brokerage fee owed the Selling Firm is governed by the Listing Firm's offer of compensation as disclosed in the Real Estate Information Network, Inc. (REIN) Selling Broker Commission data field and any written amendments thereto expressly agreed upon by Listing Firm and Selling Firm, if any, and any separate agreement between Buyer and Selling Firm.