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assessed upon the option parcels which are chargeable to capital account, subsequent to October 15, 1958; Purchaser may exercise each option at any time during the term hereof by delivering to Land Company notice of its intent so to do, together with the pur­chase price, provided Purchaser shall have received all necessary governmental approvals and shall have: in case of Option Parcel No, 1, entered into an agreement for construction of a good and substantial office, warehouse and manufacturing building or build­ings containing floor area of not less than ^0,000 square feet; in the case of Option Parcel No. 2 give written notice to Land Company that Parcel No. 2 is required for expansion of Purchaser's operations being conducted on Parcel No. 1; Land Company, provided Purchaser be not in default, to deliver to Purchaser deeds conveying option par­cels and standard policies of title Insurance in amount of the pur­chase price, showing title to said option parcels to be vested in Purchaser, deed for Option Parcel No. 1 shall convey title subject to: (a) Taxes for the fiscal year in which said option is exercised, whether yet payable or not, and taxes for all subsequent years; (b) Conditions, restrictions, exceptions, reserva­tions, easements and encumbrances of record; (c) Easement for flood control purposes granted to the Los Angeles County Flood Control District recorded in Book 18176, Page 173, Official Records of Los Angeles County; (d) Easement for drainage purposes granted County of Los Angeles, recorded in Book 1517^, Page 262, Official Records of Los Angeles County; (e) Easement for drainage purposes granted County of Los Angeles, recorded in Book 6167, Page 319, Official Records of Los Angeles County;